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Crypto markets experienced a brief rebound as investor sentiment turned more optimistic, but analysts caution that the swift change in retail expectations could signal short term weakness rather than renewed strength.

Blockchain analytics firm Santiment reported on Wednesday that retail traders have dramatically reversed their outlook several times over the past month. Throughout most of June, sentiment remained overwhelmingly bearish as Bitcoin dropped to around $58,000. However, after the leading cryptocurrency recovered toward $64,000, many traders quickly turned bullish.

According to Santiment, these rapid swings highlight how strongly retail investors react to short term price movements.

Markets Often Move Against Retail Expectations

Historically, crypto markets have tended to move against the consensus view among retail traders, as crowded positions are often vulnerable to reversals. That pattern appeared to play out again as the broader crypto market slipped about 1.5%, with Bitcoin falling below $63,000 during Wednesday’s Asian trading session.

Santiment noted that while growing optimism does not necessarily mean the rally has ended, a sudden surge in bullish expectations often suggests the market could pause before attempting another sustained advance.

Geopolitical Tensions Add Pressure

The latest decline also coincided with renewed military action by the United States against Iran following attacks on commercial vessels in the Strait of Hormuz.

The US Central Command announced that it had launched a series of strikes targeting Iran, stating that the operation was intended to impose significant costs for attacks on commercial shipping and civilian crews operating in international waters.

Meanwhile, CryptoQuant analyst Darkfost said Bitcoin’s apparent demand has remained negative for most of the year, suggesting that the recent price recovery has not been supported by stronger underlying buying interest.

Another market analyst, Axel Adler Jr., said Bitcoin continues to trade in a risk off environment. He pointed to weak inter exchange flows through Coinbase Advanced and noted that market momentum has yet to show signs of a sustained bullish reversal.

Bitcoin and Altcoins Retreat

Renewed geopolitical uncertainty quickly erased much of the recent market momentum, wiping roughly $50 billion from the total cryptocurrency market capitalization over the past 12 hours.

Bitcoin dropped to an intraday low of about $62,600 during Wednesday’s Asian session, marking a decline of roughly 2.3% from the previous day’s high above $64,000.

Ether also moved lower, falling from around $1,800 to approximately $1,750, while most major altcoins returned to negative territory as selling pressure intensified across the market.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

BonkDAO has alerted law enforcement after losing more than $21 million from its treasury, while also working with exchanges and ecosystem partners to respond to the incident. The case has sparked debate across the crypto industry, with some describing it as a governance exploit and others arguing it was simply the result of the DAO’s voting rules.

How the Treasury Was Drained

According to blockchain analytics firm Lookonchain, the operation began on June 30 when an attacker submitted a proposal requesting the transfer of 4.426 trillion BONK tokens, valued at roughly $21.2 million, to a wallet under their control.

For the proposal to move forward, it required support representing at least 1% of BONK’s circulating supply. CoinGecko data shows the token supply stands at just under 88 trillion, meaning approximately 880 billion BONK were needed to reach quorum.

Beginning around July 4, the attacker accumulated 882.285 billion BONK through purchases on Bybit and Binance. That amount narrowly exceeded the threshold required to validate the vote. After securing enough voting power, the attacker cast all of the tokens in favor of the proposal, allowing it to pass and triggering the transfer of 4.426 trillion BONK into their wallet.

Blockchain analytics company Chainalysis confirmed the sequence of events, stating that the attacker acquired the tokens between July 4 and July 5 through a combination of purchases on centralized exchanges and borrowed assets obtained from decentralized finance lending platforms.

Roughly nine hours after the vote succeeded, Chainalysis reported that the attacker transferred about $188,000 to OKX, although PeckShield estimated the amount at $148,000. The remaining funds were placed into a newly created organization called BONK 2.0, which was established to govern the stolen treasury. Chainalysis said control of the new DAO rests with the attacker’s wallet, the exploiter wallet, and a third wallet believed to have financial ties to the attacker.

BonkDAO acknowledged the treasury loss in a statement on X, saying it had identified the exchange accounts used to acquire the voting tokens before the proposal passed. The organization added that it had contacted law enforcement and was coordinating with exchanges, cross chain bridge providers, and the Solana Foundation in an effort to contain the situation.

The incident weighed on BONK’s market performance. CoinGecko data showed the token trading at approximately $0.00000438 at the time of writing, down 7.4% over the previous 24 hours, although it remained nearly 5% higher for the week.

Governance Exploit or Fraud?

The controversy adds to a growing list of decentralized finance security incidents. CryptoRank recently reported that DeFi platforms have suffered almost $1 billion in losses to malicious actors so far this year.

However, not everyone believes the BONK incident qualifies as theft. World Liberty Financial advisor Ogle argued that the outcome appeared to follow the DAO’s established governance process.

According to Ogle, an individual legally purchased enough tokens, submitted a proposal, won the vote with minimal opposition, and had the proposal executed according to the protocol’s rules. Ogle added that reports claiming the governance website was inaccessible during the voting period could raise separate concerns if verified, but would not automatically make the on chain vote unlawful.

Others strongly disagreed. Ripple Chief Technology Officer Emeritus David Schwartz argued that using governance control over a shared treasury for personal enrichment could constitute fraud because governance participants may owe fiduciary responsibilities to other stakeholders. He also warned that BonkDAO’s lack of a formal legal structure could expose participants to partnership style legal liabilities in certain jurisdictions.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Ripple Chief Legal Officer Stuart Alderoty has pushed back against the way a recent public opinion poll was presented, arguing that the level of cryptocurrency ownership in the United States is far too significant to be dismissed as a minor political constituency.

His comments came after Politico described support for crypto legislation as “only 27 percent.” Alderoty countered that the same figure represents approximately 67 million American adults who already own digital assets, making crypto holders one of the country’s largest voting blocs.

Crypto Ownership Continues to Grow

Writing in an opinion article published on July 6, Alderoty pointed to findings from the National Cryptocurrency Association’s 2026 State of Crypto Holders report, which found that one in four American adults now owns cryptocurrency. That percentage aligns with the 27 percent cited in the Politico survey and equates to roughly 67 million people.

Alderoty argued that portraying such a large segment of the population as insignificant misrepresents the growing influence of digital asset owners. In his view, these millions of Americans are not asking lawmakers for special treatment but simply expect clear and effective regulation.

He also highlighted the rapid pace of adoption over the past year. According to the industry report, approximately 12 million Americans entered the crypto market during that period, increasing ownership from one in five adults to one in four. Alderoty noted that the number of new users is roughly equal to the combined populations of New York City and Los Angeles.

The report also revealed a shift in ownership demographics. Women accounted for 42 percent of new crypto holders, contributing to a 10 percent year over year increase in female participation. Alderoty said this expanding and increasingly diverse user base further strengthens the industry’s political relevance.

Survey Reflects Mixed Public Sentiment

Politico’s polling found that 45 percent of Americans believe cryptocurrencies are not worth the risk, while 25 percent said the potential rewards justify the investment. Confidence in traditional financial institutions also remained stronger, with 47 percent saying they would trust banks over crypto platforms, compared with just 9 percent who preferred digital asset services.

However, Alderoty argued that those findings should not be interpreted as widespread rejection of cryptocurrencies. He pointed out that many Americans also consider the stock market risky, emphasizing that recognizing investment risk does not necessarily mean opposing the asset class.

He further cited survey data showing that 69 percent of crypto holders trust digital assets, slightly exceeding the 65 percent who expressed confidence in the traditional banking system.

CLARITY Act Still Awaiting Progress

The debate over crypto regulation continues as lawmakers work to advance the CLARITY Act, which missed the White House’s target for approval before July 4.

The legislation was approved by the Senate Banking Committee in a 15 to 9 vote on May 14 but still requires a full Senate vote. It must also be reconciled with separate market structure legislation advanced by the Senate Agriculture Committee before a final version can move to the House of Representatives and eventually be sent to President Donald Trump for consideration.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Bitcoin endured its weakest June performance in four years, with declining spot demand and fading institutional interest adding pressure to the market. While the recent rebound has fueled speculation that the cryptocurrency may have reached a cyclical bottom, analysts caution that it is still too early to confirm a lasting recovery.

In its latest Bitfinex Alpha report, analysts at Bitfinex said historical trends suggest July has often delivered stronger performance following weak Junes. However, they stressed that seasonal patterns alone will not be enough to sustain a rally. A meaningful recovery will require renewed buying from both spot investors and institutional participants.

June Marked by Heavy Selling Pressure

Bitcoin dropped to a cycle low of $57,800 during June, making it the cryptocurrency’s worst June since 2022 and its second weakest June performance since 2013.

According to Bitfinex analysts, the decline was driven by two major factors: slowing demand from Strategy and six consecutive weeks of outflows from spot Bitcoin exchange traded funds, the longest streak of ETF withdrawals since the products launched.

From its cycle peak, Bitcoin fell as much as 54.15 percent before finishing June down 20.48 percent, significantly underperforming the month’s historical average decline of about 1.5 percent. The sharp selloff also left the market in technically oversold territory heading into July.

Recovery Depends on Stronger Demand

Bitcoin reclaimed the $60,000 level on July 1, prompting some analysts to view the previous decline as a failed breakdown rather than the beginning of another prolonged downtrend.

The rebound also suggested that buyers were beginning to return near the market lows. Even so, Bitfinex believes a sustainable recovery will depend on stronger spot demand and renewed inflows into Bitcoin exchange traded funds rather than seasonal trends alone.

Historically, July has delivered solid gains following weak June performances, particularly during the 2018 and 2022 bear market cycles. While that pattern offers reasons for optimism, analysts say it remains too early to conclude that the current market has reached its cycle bottom.

They argue that a lasting recovery will only be possible once the key sources of demand, especially institutional investment, regain momentum.

There has already been one encouraging sign, with spot Bitcoin ETFs recording $223.5 million in net inflows on July 2. However, Bitfinex noted that a single day of positive flows is not enough to offset the impact of six straight weeks of persistent outflows.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Crypto analyst Matthew Hyland believes the market is entering a favorable phase that could fuel strong gains across digital assets over the next two to three years. According to him, the broader macroeconomic environment that weighed on cryptocurrencies for the past four years is beginning to shift, creating conditions similar to those that preceded previous major bull markets.

In recent posts on X, Hyland argued that investors are once again embracing risk, a trend he says mirrors the market transitions seen before the powerful crypto rallies of 2016 and 2020.

Historical Cycles Point to a New Bullish Phase

Hyland based his outlook on three major macro risk bear market periods spanning 2014 to 2016, 2018 to 2020, and 2022 through 2026. During each of these phases, cryptocurrencies struggled while broader market conditions remained unfavorable. Once those macro conditions improved, however, the crypto market entered some of its strongest periods of growth.

He believes the current cycle is following the same pattern.

According to Hyland, the macro risk environment is emerging from a prolonged bearish phase for the first time since the market transitions of 2016 and 2020. In both previous instances, the shift created what he described as exceptional long term opportunities for crypto investors.

The analyst also highlighted two technical indicators supporting his outlook. Bitcoin dominance has recently formed a death cross for the first time since the previous market transitions, which he views as an early sign of changing market leadership. He expects altcoin dominance to produce a golden cross later this year, repeating a pattern that occurred before earlier altcoin rallies.

Hyland added that his proprietary macro risk indicators turned bullish in both 2016 and 2020 and are now signaling another similar shift. While he believes this could make the next two to three years one of the strongest periods for crypto investing, he acknowledged that the outlook remains a market thesis rather than a certainty, as digital asset cycles are also influenced by liquidity, investor sentiment, and broader economic conditions.

Market Signals Remain Mixed

Hyland’s comments come as Bitcoin trades around $63,000 after briefly climbing above $64,000, its highest level in roughly two weeks. The cryptocurrency recovered despite Strategy’s sale of 3,588 BTC to help fund dividend payments.

Market intelligence platform Swissblock said Bitcoin is showing signs of stabilizing but cautioned that a sustained recovery will require continued buying pressure.

Several other analysts have also expressed optimism. Credible Crypto believes altcoins that remain 80 to 90 percent below their previous highs could outperform Bitcoin if market sentiment continues to improve. He also noted that long term holders now control nearly 80 percent of Bitcoin’s circulating supply.

Meanwhile, analyst Michael van de Poppe suggested Ethereum may have already passed its weakest period, pointing to the possibility of forming a higher low against Bitcoin after recording three consecutive quarters of declines exceeding 20 percent.

Trader Merlin The Trader also highlighted Ethereum’s drop to 0.026 BTC, a level that previously preceded a 230 percent rally against Bitcoin. Although these forecasts are independent of Hyland’s analysis, the number of bullish signals emerging within the same week has drawn increased attention from market participants.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Coinbase has received regulatory approval to provide investment services in the United Kingdom, marking one of its most significant expansions in the country since entering the market.

The new license allows the cryptocurrency exchange to broaden its offerings beyond digital assets by introducing traditional financial products through a single platform.

With the approval, Coinbase will roll out new investment options for UK customers, including equities and derivatives. Institutional and professional traders will gain access to cryptocurrency, equity, and commodity perpetual futures, while retail users will be able to buy and sell stocks directly on the exchange for the first time.

The investment services license complements Coinbase’s existing UK e money license and crypto asset registration, further strengthening its position as one of the country’s most comprehensively regulated digital asset platforms.

The company described the approval as an important milestone in its long term vision of becoming an all in one financial marketplace where customers can access a wide range of investment products through a single account.

As part of its broader expansion strategy, Coinbase also plans to introduce tokenized real world assets, further bridging the gap between traditional finance and blockchain based markets.

The exchange credited the UK’s evolving regulatory framework for creating a more supportive environment for innovation and investment, highlighting the country’s ongoing efforts to establish clear legislation for the cryptocurrency industry.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Bitcoin experienced sharp price swings over the past 24 hours after Strategy revealed another major Bitcoin sale. Although the announcement briefly triggered a market selloff, the leading cryptocurrency recovered nearly all of its losses by the end of the day.

Meanwhile, most large cap altcoins traded with little momentum. XRP extended its decline after failing to reclaim the $1.15 level, while Dogecoin, Cardano, and Stellar also posted notable losses.

Bitcoin Quickly Bounces Back

Bitcoin fell below $58,000 on July 1 for the first time in nearly two years before staging an impressive recovery. The asset reclaimed the $60,000 level and continued climbing over the following days, maintaining its upward momentum through the weekend.

The rally pushed BTC above $63,500 on Sunday before sellers emerged, dragging the price back below $63,000. Buyers returned on Monday, lifting Bitcoin to around $64,000, its highest level in roughly two weeks.

The rally was briefly interrupted after Strategy announced the sale of more than 3,500 BTC. The news sparked an immediate decline that sent Bitcoin to approximately $61,200 as negative market sentiment spread.

However, the weakness proved short lived. Bitcoin quickly reversed course, surging beyond $64,500 later in the day to establish another local high.

The cryptocurrency has since settled near $63,000, roughly where it traded before Strategy’s announcement. Its market capitalization remains above $1.26 trillion, while its share of the total cryptocurrency market stands at 56.6 percent.

XRP, DOGE, and ADA Lead Altcoin Declines

Most major altcoins managed to hold relatively steady despite the market volatility. Ethereum continues to trade within the $1,750 to $1,800 range, while BNB remains below $580.

XRP slipped another 1.3 percent to around $1.1275, moving further away from the important $1.15 support level after failing to break above it.

Dogecoin and Cardano also recorded losses of between 2 and 3 percent, while Stellar posted one of the steepest declines among the larger cryptocurrencies, dropping more than 5 percent on the day.

On the positive side, Solana, Hyperliquid, Rain, and Zcash registered modest gains. Other tokens including WLFI, Aave, Morpho, and DeXe outperformed the broader market with advances of as much as 8 percent.

The total cryptocurrency market capitalization remains largely unchanged, hovering around $2.24 trillion.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Strategy’s latest Bitcoin sale may not be the bearish signal many investors initially assumed. According to Grayscale Head of Research Zach Pandl, the move could strengthen confidence in the company’s financial strategy while helping Bitcoin establish a more sustainable price floor.

The Bitcoin treasury firm sold 3,588 BTC last week for roughly $216 million. The announcement briefly pushed Bitcoin below $61,500 before the cryptocurrency quickly recovered.

A Stronger Financial Position

In a recent market update, Pandl argued that the sale could ultimately benefit both Strategy and the broader Bitcoin market. While the company’s financing model has attracted scrutiny in recent months, he emphasized that its balance sheet remains healthy.

Strategy currently owns approximately $52 billion worth of Bitcoin while carrying about $7 billion in debt. Its annual preferred stock dividend obligations are under $2 billion, leaving the company with ample capacity to meet both debt repayments and shareholder commitments.

Still, changing market conditions had fueled questions about how Strategy would balance its financial obligations. By late May, its cash reserves had fallen to roughly $870 million, enough to cover only about six months of preferred dividend payments. That sparked speculation over whether the company would issue discounted shares, sell Bitcoin, or take other measures that could negatively impact preferred shareholders.

Those concerns eased in late June when Strategy introduced a revised capital management framework. Under the new policy, the company said it would issue shares or sell Bitcoin whenever necessary to maintain sufficient US dollar reserves to meet dividend obligations.

On July 6, Strategy confirmed it had completed another Bitcoin sale during the previous week. The transaction boosted its cash reserves to approximately $2.55 billion, providing enough liquidity to cover around 17 months of dividend payments.

Pandl said the rebound in Strategy’s STRC shares suggests investors are becoming increasingly confident in the company’s updated financing approach.

Bitcoin Shrugs Off Strategy Fears

Despite lingering concerns surrounding Strategy’s Bitcoin sales, market data indicates the broader impact has been limited. Analytics platform Santiment noted that Bitcoin quickly recovered after the initial selloff, successfully defending the $60,000 price level once again.

The firm described the recovery as an unexpected relief rally, adding that it followed an overly pessimistic market sentiment that had dominated trading toward the end of June.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Coinbase is investigating an AI generated prediction market alert after users received a breaking news notification claiming Norway had defeated Brazil 3 to 2 in the FIFA World Cup before the match had even started at MetLife Stadium.

The alert also stated that Manchester City striker Erling Haaland scored twice to send Norway into the quarterfinals.

Ironically, Coinbase’s own prediction market page showed that the match had been delayed because of poor weather. When the game was eventually played, Norway did beat Brazil, although by a different score, and Haaland did score two goals, making the inaccurate alert appear surprisingly close to the final outcome.

Coinbase Responds After AI Error

The issue was first flagged by Relay Digital managing partner Jay Drain Jr., who criticized the AI generated notification on X, saying it had fabricated the result of a match that had not yet been played. He described the alert, which was sent to millions of Coinbase users, as factually incorrect, dangerous, and irresponsible.

Coinbase CEO Brian Armstrong later confirmed that the company had launched an investigation into the incident. Max Branzburg, Coinbase’s head of consumer and business products, said the incorrect story had been removed and additional safeguards were introduced to reduce the likelihood of similar mistakes in the future.

Branzburg acknowledged the potential of AI powered market insights but stressed that the technology still requires improvements to avoid these types of errors. He also joked that since Norway eventually won and Haaland scored twice, perhaps the AI knew something no one else did.

Prediction Market Activity Surges During the World Cup

The FIFA World Cup has sparked a massive rise in activity across prediction markets. Trading volume climbed from roughly $65 million in early June to as much as $5.6 billion by the end of the month, with Kalshi handling a significant share of the action.

The surge has also produced heavy losses for some traders. Blockchain analytics platform Lookonchain recently highlighted a Polymarket user known as “Coldsway,” who reportedly lost $11.63 million over a 10 day period while betting on World Cup matches.

According to Polymarket data, the trader placed wagers across 15 soccer markets with total trading volume of $48.19 million. Only four positions ended in profit while 11 resulted in losses, leaving the trader with a win rate of just 26.7 percent.

The most successful bet generated $1.12 million after staking $689,318 on a draw between Australia and Egypt. Another winning position earned $962,940 from a $1.48 million wager predicting that Egypt would fail to win its July 3 match.

However, those gains were overshadowed by several costly losses. The largest came after Morocco’s 3 to 0 victory over Canada on July 4, resulting in a $4.95 million loss. Another unsuccessful prediction that Canada would fail to defeat South Africa on June 28 cost the trader an additional $3.10 million.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Prominent blockchain investigator ZachXBT has donated approximately $41,000 to charity after selling meme coins that were created without his involvement and sent to his public donation wallet.

The investigator said multiple copycat tokens using his name and image appeared across several blockchain networks over the past week as developers attempted to capitalize on his growing popularity.

ZachXBT emphasized that he had no connection to any of the projects and reaffirmed that he has never endorsed or launched a meme coin.

Meme Coin Donations Redirected to Charity

According to ZachXBT, every unauthorized token sent to his donation wallet was immediately sold, with all proceeds directed toward charitable initiatives instead of personal use.

The funds were donated through The Giving Block to support earthquake relief efforts in Venezuela.

The donations included 25,000 USDT sent to GiveDirectly on July 6, another 5,000 USDT donated to Direct Relief later the same day, and 153 SOL, valued at roughly $11,000, which was also contributed to Direct Relief on June 28.

Long Standing Opposition to Meme Coins

ZachXBT has built a reputation as one of the cryptocurrency industry’s most respected on chain investigators through his work exposing scams, exploits, and fraudulent actors.

He has consistently distanced himself from meme coin projects. In April, he publicly stated that he had never promoted, created, or shared the contract address of any meme coin with his followers.

He also explained that while he maintains a public wallet to support his investigative work, any tokens sent to that address are sold rather than held.

The investigator expressed a similar position in December 2023 after temporarily deactivating his X account. At the time, he warned users against purchasing meme coins using his identity after several Solana based tokens emerged claiming an association with him.

Many members of the crypto community defended his stance, including former Wall Street trader and crypto artist Ovie Farug, who praised ZachXBT for his efforts to protect retail investors from cryptocurrency scams.

Continued Scrutiny of Questionable Projects

ZachXBT has remained active in investigating controversial crypto projects.

Most recently, he questioned the multibillion dollar valuation of MemeCore, raising concerns that insiders appeared to control more than 90 percent of the token’s supply. He also criticized major cryptocurrency exchanges for listing the asset despite what he described as significant warning signs.

Earlier this year, he voiced similar concerns about the SIREN and LAB projects, continuing his efforts to highlight potential risks within the digital asset market.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic