CoinSignals

Flare has rolled out Smart Accounts version 1.3, introducing a simpler way for XRP holders to access decentralised finance (DeFi) while continuing to use their existing XRP Ledger wallets.

The upgrade removes several common barriers to DeFi adoption, eliminating the need to create additional wallets, manually bridge assets, or acquire gas tokens before interacting with decentralised applications.

According to a press release shared with CryptoPotato, users can now complete the entire onboarding process with a single wallet signature, replacing the previous system that required two separate approvals.

One Signature Unlocks DeFi

With Smart Accounts 1.3, users approve a single transaction from their XRP Ledger wallet.

Once confirmed, the platform automatically converts XRP into FXRP and deposits the assets into the selected yield vault without requiring any further user interaction.

The process is verified by the Flare Data Connector, which confirms the XRP Ledger transaction before smart contracts execute the remaining steps.

Throughout the process, the original XRP remains securely locked on the XRP Ledger at a one to one backing ratio, allowing users to maintain full ownership of their assets while avoiding manual bridging and cross chain gas fees.

The simplified experience arrives as demand for FXRP within DeFi continues to grow.

Since February, the amount of FXRP deployed across decentralised finance protocols has increased by nearly 75%, rising from 82 million to 144 million. Flare also reported that more than 40 million XRP is currently generating yield through Smart Accounts across almost 24,000 accounts.

More Yield Options for Users

Flare’s Chief Product Officer, Filip Koprivec, said the update addresses one of the biggest obstacles preventing XRP holders from participating in DeFi.

According to Koprivec, Smart Accounts 1.3 enables users to move directly from holding XRP to earning yield with a single wallet approval while preserving a fully non custodial experience.

The release also expands investment choices by offering two different yield vaults.

Users can continue using the existing Monarg vault or choose the newly introduced Clearstar Flare XRP Yield Vault, which generates returns through on chain lending and liquidity strategies.

Flare said the Clearstar vault allocates FXRP across decentralised protocols such as Avant and Euler, while keeping all positions publicly visible for greater transparency.

The company added that previous versions of the Clearstar strategy have already managed more than 33 million FXRP.

Wider Wallet Compatibility

Smart Accounts 1.3 also broadens wallet support, allowing more XRP holders to access the service through Ledger, Xaman, Joey Wallet, WalletConnect, including Bifrost, and D’CENT.

Joey Wallet has gone a step further by integrating the Smart Accounts interface directly into its application, enabling users to complete the entire process without leaving the wallet.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

SpaceX shares have suffered a steep decline since reaching their post initial public offering (IPO) high, with the stock losing almost half its value as investors reassess the company’s valuation, long term growth prospects, and financial outlook.

The sell off has erased much of the enthusiasm that followed the company’s market debut, leaving investors focused on its upcoming earnings report and future spending plans.

Post IPO Momentum Quickly Faded

SpaceX closed at a record low of $113.50 on 27 July, extending a sharp decline that began shortly after its public debut on 12 June.

The stock has now fallen nearly 50% from its post IPO peak above $225 and is trading below its $135 offering price.

Before and after its listing, SpaceX ranked among the most actively traded tokenised stocks on platforms including Hyperliquid and Binance, reflecting strong investor interest during its early days as a publicly traded company.

Investors Question High Valuation

Following its IPO, SpaceX briefly reached a market capitalisation exceeding $2.6 trillion. By 27 July, that figure had dropped to roughly $1.5 trillion, wiping out nearly half of the company’s market value.

Many analysts believe the initial rally reflected extremely optimistic expectations surrounding future growth from Starlink, reusable launch technology, artificial intelligence initiatives, and proposed orbital data centre projects.

As investor sentiment cooled, markets became less willing to assign premium valuations to projects that may take years to generate meaningful returns.

Financial performance has also contributed to the shift in sentiment.

According to the company’s reported results, SpaceX recorded a $4.9 billion loss last year despite generating close to $19 billion in revenue.

The company also raised approximately $25 billion through the bond market to finance large scale infrastructure investments, increasing investor concerns about debt levels, borrowing costs, and heavy spending on artificial intelligence.

Some market observers also believe that widespread profit taking and the unwinding of highly bullish positions established after the IPO accelerated the decline.

Lock Up Expiration Could Increase Selling

Another factor weighing on sentiment is the approaching expiration of SpaceX’s first post IPO lock up period.

Following the release of its first quarterly earnings report as a public company, eligible employees and early investors will be allowed to begin selling a portion of their shares.

The earnings report is scheduled for 4 August, while the lock up period expires on 6 August, potentially increasing the supply of shares available for trading.

At the same time, short sellers have continued to build bearish positions, reflecting growing expectations of further downside volatility.

Earnings Report Becomes the Next Major Catalyst

Attention is now firmly fixed on SpaceX’s first public earnings announcement.

Investors will be closely watching the company’s revenue growth, profitability, artificial intelligence investment strategy, Starlink’s performance, and any guidance regarding future expansion.

The market will also be monitoring how many newly unlocked shares enter circulation, as increased selling pressure could influence the stock’s next major move.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Bitcoin extended its recent decline on Tuesday, dropping to its lowest level in ten days after failing to hold above key resistance. The move leaves the leading cryptocurrency nearly $4,000 below last week’s local high of $67,000, reinforcing concerns that recent recoveries may have been temporary relief rallies rather than the start of a sustained bullish reversal.

Several factors appear to have contributed to the latest downturn.

Uncertainty Ahead of the Federal Reserve Decision

The biggest source of caution is the upcoming US Federal Reserve policy announcement.

Although most economists expect policymakers to leave interest rates unchanged within the 3.50% to 3.75% range, uncertainty remains unusually high. Some analysts and prediction markets have assigned roughly a one in three chance of an unexpected rate increase as the Federal Reserve continues to monitor stubborn inflation.

While June’s Consumer Price Index came in below expectations, many market participants believe the data may not fully reflect underlying inflationary pressures.

Investors are also expected to closely watch Federal Reserve Chair Kevin Warsh’s comments for clues about the direction of monetary policy during the remainder of the year.

Periods of uncertainty surrounding interest rates typically weigh on risk assets such as cryptocurrencies, as higher borrowing costs and stronger bond yields often encourage investors to shift capital into lower risk investments.

As a result, many traders appear to be reducing exposure ahead of the highly anticipated announcement.

Weakness Across Global Financial Markets

Bitcoin’s decline has also coincided with broad weakness across traditional financial markets.

Asian equities experienced significant losses over the past two trading sessions, with South Korea’s KOSPI falling sharply and Japan’s Nikkei 225 declining more than 4%.

US markets also showed signs of weakness despite relatively stable headline indices. Several major technology companies, including Nvidia and Micron, recorded losses of up to 5%, reflecting reduced investor appetite for high growth assets.

Meanwhile, gold also retreated after reaching a recent high, falling by more than $100 within hours.

The broad based decline across multiple asset classes suggests investors are becoming increasingly cautious ahead of the Federal Reserve’s decision.

Bitcoin ETFs Continue to See Outflows

Although exchange traded fund outflows were relatively modest compared with previous weeks, they likely added to the cautious market sentiment.

US spot Bitcoin ETFs recorded less than $12 million in net outflows on Monday, a much smaller figure than the $100 million plus daily withdrawals seen during June’s sell off.

Even so, the latest withdrawals extended a streak of negative flows that began last Thursday, when investors pulled approximately $225 million from the funds, followed by more than $240 million on Friday.

While recent outflows have slowed considerably, they continue to indicate cautious institutional positioning.

What Comes Next for Bitcoin?

Analysts remain divided on Bitcoin’s next move.

Market analyst Ali Martinez noted that Bitcoin’s three day Bollinger Bands have tightened significantly, a technical pattern that has historically preceded major price swings. Following several months of relatively subdued volatility, the current setup suggests a larger move may be approaching.

Trader Ted Pillows identified $62,000 as the next major support level. A decisive break below that area could increase the likelihood of another decline toward $60,000 or lower.

Not all analysts share a bearish outlook.

According to analyst CW, large Bitcoin holders have been rebuilding positions following the recent decline, potentially laying the foundation for a short term recovery. The analyst also observed that there are currently few significant sell barriers above the market should buying momentum return.

Despite these technical signals, the Federal Reserve’s policy announcement remains the most important catalyst. Regardless of whether interest rates remain unchanged or policymakers deliver a surprise, traders should expect elevated volatility across Bitcoin and the broader cryptocurrency market in the near term.#crypto#cryptonews https://coinsignals.nethttps://t.me/coinsignalpublic

The cryptocurrency market erased roughly $80 billion in value over the past 24 hours after Bitcoin (BTC) suffered a sharp rejection near key resistance, triggering a broad sell off across major digital assets.

The downturn followed Monday’s rally, which had been fuelled by easing geopolitical tensions over the weekend. However, the bullish momentum quickly faded as sellers regained control.

Bitcoin Drops After Failing to Hold Above $65K

Bitcoin enjoyed a strong rally last week, climbing from around $63,750 to a monthly high near $67,000 in just 36 hours. Despite the impressive move, the leading cryptocurrency failed to break above that level and gradually retreated to approximately $63,750 by Friday.

Buyers stepped back in over the weekend, helping BTC recover to around $64,000 as market volatility eased.

Optimism returned on Monday after news of reduced tensions in the Middle East encouraged renewed risk appetite. Bitcoin climbed to $65,600 twice, reaching its highest level since Friday.

The recovery proved short lived.

After failing once again to break resistance, Bitcoin experienced an aggressive sell off that sent the asset tumbling to around $63,000, its lowest price in ten days and a move that contributed to nearly $700 million in liquidations across the derivatives market.

At the time of writing, BTC had recovered slightly to around $63,400, although it remained roughly 3% lower on the day. Its market capitalisation stood at approximately $1.72 trillion, while its dominance of the overall crypto market remained below 57%.

Altcoins Extend Market Losses

The broader cryptocurrency market also came under heavy selling pressure.

Ethereum, which had climbed to a two month high near $1,980 a day earlier, reversed sharply and fell more than 4%, dropping below $1,900.

XRP and Solana (SOL) posted similar declines, while Hyperliquid’s HYPE token recorded one of the steepest losses among large cap cryptocurrencies, sliding about 8% to around $55.

Other notable losers included Zcash (ZEC), Chainlink (LINK), Stellar (XLM), and Cardano (ADA), all of which traded firmly in negative territory.

Among the top 100 cryptocurrencies by market capitalisation, BEAT suffered the biggest decline, plunging roughly 25% to around $2.74. NEAR dropped about 10%, while SHIB and PI each fell approximately 9%.

Total Crypto Market Value Falls by $80 Billion

The widespread decline reduced the total cryptocurrency market capitalisation from roughly $2.33 trillion to $2.25 trillion, representing an $80 billion loss in market value within a single day as investors moved to reduce risk ahead of the US Federal Reserve’s upcoming policy decision.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

The Hyperliquid Policy Center (HPC) and Multicoin Capital have called on the US Commodity Futures Trading Commission (CFTC) to refine its proposed framework for prediction markets, arguing that clearer rules would encourage innovation while providing greater legal certainty for market participants.

In a joint comment submitted on 27 July, the two organisations backed the regulator’s proposal but recommended additional guidance on contract settlement standards and greater transparency in the review process.

Industry Supports Federal Oversight

The submission responds to the CFTC’s proposal, “Prediction Markets; Public Interest Determinations,” released in June.

The proposal would amend Regulation 40.11, creating a 90 day review process for event contracts linked to subjects such as gaming, war, terrorism, assassination, and other activities outlined in the Commodity Exchange Act.

HPC and Multicoin described the framework as clear and thoughtfully designed, while reiterating that prediction markets should remain under the CFTC’s exclusive federal authority.

They also warned that allowing individual states to regulate the sector independently would create inconsistent rules across the country, fragmenting the national derivatives market and increasing compliance burdens for exchanges.

Settlement Should Determine Regulatory Treatment

A key recommendation in the letter focuses on how regulators interpret the word “involve” in the Commodity Exchange Act.

Under current law, the CFTC can review and prohibit contracts involving certain activities if they are deemed contrary to the public interest.

HPC and Multicoin argue that regulators should evaluate contracts based on the event that determines settlement rather than the act of trading itself.

In their view, a contract should only fall within the stricter regulatory framework when its settlement depends directly on unlawful or prohibited activity, not simply because purchasing the contract resembles a wager.

The organisations also encouraged the CFTC to publish additional examples covering more complex scenarios, such as contracts with multiple settlement outcomes or products that reference sensitive events only indirectly. They believe clearer guidance would help developers and exchanges assess regulatory risks before launching new products.

Greater Transparency Could Benefit the Industry

The filing also urges the CFTC to increase transparency after completing reviews under Regulation 40.11.

The current proposal requires the agency to publish written explanations when it blocks a contract and to explain how each decision aligns with previous rulings.

However, HPC and Multicoin argue that approvals are just as valuable as rejections when it comes to understanding regulatory boundaries.

Without public explanations for approved contracts, they contend that other platforms may be forced to repeat the same legal analysis, seek additional regulatory guidance, or abandon products that might ultimately comply with existing rules.

Industry Awaits the CFTC’s Response

Whether the CFTC incorporates these recommendations remains to be seen.

If adopted, the proposed changes could provide clearer standards for prediction markets while signalling that US regulators are willing to work closely with industry participants to develop a consistent and transparent regulatory framework for on chain event contracts.#crypto#cryptonewshttps://coinsignals.net https://t.me/coinsignalpublic

Bitcoin’s recent rebound has revived hopes that the worst of the current bear market is over, but one market analyst believes the correction may not be finished just yet.

Pseudonymous trader NoName argues that Bitcoin (BTC) could still decline into the $39,000 to $49,000 range before establishing a lasting market bottom, despite its recent recovery from lower levels.

Recovery Could Be a Setup for One More Sell Off

In a post published on X on 28 July, NoName said the current market sentiment closely resembles the final stages of the 2018 bear market, when many traders mistook a temporary rally for the beginning of a new bull cycle.

According to the analyst, Bitcoin is currently moving higher because there is an unfilled fair value gap (FVG) above the market. A fair value gap is an area created by a rapid price move where little or no trading occurs, and traders often expect price to revisit those levels before continuing its broader trend.

Rather than viewing the latest rally as a confirmed reversal, NoName believes Bitcoin is simply moving higher to fill that gap before another significant decline.

The analyst expects BTC to complete the gap and then fall immediately, or within the following one to three days, beginning what could become a multi week search for a market bottom between $39,000 and $49,000.

Only after that process is complete would NoName consider adopting a bullish outlook.

Analyst Maintains Bearish Outlook

The latest forecast builds on the trader’s earlier calls.

NoName previously said they sold Bitcoin near its 2025 all time high of around $117,000 before the subsequent bear market unfolded.

The analyst believes market psychology has shifted from extreme optimism at the peak to widespread pessimism today, but still argues that the bear market has several weeks remaining before Bitcoin reaches an attractive long term buying zone.

Traders Remain Split on Bitcoin’s Next Move

Market expectations continue to differ sharply.

Prediction platform Kalshi currently assigns a 55% probability that Bitcoin will fall to $50,000 before reclaiming the $100,000 level, highlighting ongoing uncertainty about the cryptocurrency’s next major move.

Not everyone agrees with the bearish scenario.

Trader KillaXBT argued that too many investors are waiting for Bitcoin to revisit $50,000 or even $40,000, drawing comparisons with 2022 when many expected a drop to $10,000 that never materialised.

According to KillaXBT, history has repeatedly shown that gradually accumulating Bitcoin over time has generally produced better results than attempting to buy at the exact market bottom.

Bitcoin Pulls Back Ahead of Fed Decision

Bitcoin’s latest price action has done little to resolve the debate.

After briefly recovering above $65,000 following easing tensions between the United States and Iran, the cryptocurrency reversed course and slipped back towards $63,000 as investors positioned themselves ahead of the US Federal Reserve’s interest rate announcement.

According to CoinGecko data, Bitcoin is down roughly 3% over the past week but remains more than 5% higher over the last 30 days. Even so, the asset continues to trade nearly 50% below its October 2025 all time high of more than $126,000.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Fundstrat co founder and BitMine chairman Tom Lee believes the CLARITY Act could become a major catalyst for the cryptocurrency industry, arguing that clear regulation in the United States would accelerate the sector’s next phase of growth.

Speaking on CNBC on Monday, Lee said digital assets have already begun recovering because countries outside the US, including Europe, Japan, and Russia, are introducing regulatory frameworks similar to the CLARITY Act. In his view, comparable legislation in the US would significantly strengthen the market.

According to Lee, crypto is evolving beyond a financial asset class into the software infrastructure for money.

“Because crypto is turning money into software, a lot of things can turn into money,” he said.

He added that once money becomes programmable, assets such as loyalty rewards, reputation systems, and other forms of digital value could function much like currency, particularly as artificial intelligence agents become more widely adopted.

BlackRock Calls the Bill a Key Milestone

BlackRock has also voiced strong support for the legislation.

Samara Cohen, the firm’s Senior Managing Director and Global Head of Market Development, described the CLARITY Act as an important step towards creating a regulatory framework that prioritises investor protection while encouraging innovation in digital assets.

She said the legislation would help the United States lead the next generation of financial market infrastructure by promoting innovation without compromising transparency, resilience, or investor safeguards.

Progress Continues but Senate Vote Remains Uncertain

The CLARITY Act cleared the House of Representatives in July 2025 with broad bipartisan backing before advancing through the Senate Banking Committee on 14 May 2026.

Despite that progress, negotiations have recently focused on ethics and conflict of interest provisions that would prevent the president and members of Congress from issuing or sponsoring digital assets. A revised Senate version released on 22 July included those ethics measures.

Senate Majority Leader John Thune said on 23 July that he does not expect the legislation to reach the Senate floor before lawmakers begin their summer recess, with the ethics provisions remaining the biggest obstacle.

With no vote currently scheduled, lawmakers have only a narrow window before the Senate’s August recess, expected around 7 August. If the bill misses that deadline, further consideration would likely be delayed until the post election lame duck session or even 2027.

Policy relations consultant Anne Kelley acknowledged the difficulty of completing the legislative process before the recess but stressed that the bill remains very much alive despite the delay.

Supporters Urge Congress to Move Forward

Lee acknowledged that lawmakers have already made significant concessions during negotiations but suggested opponents continue to seek additional changes.

Even so, he remains optimistic that the legislation could still move forward.

In a separate statement, Lee highlighted several major financial institutions backing the CLARITY Act, including Goldman Sachs, BlackRock, Fidelity, Franklin Templeton, and Charles Schwab.

He concluded by urging Congress to pass the legislation, arguing that regulatory clarity is essential for the continued growth and adoption of digital assets.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

The cryptocurrency market suffered a sharp sell-off on Tuesday, triggering nearly $700 million in liquidations as Bitcoin (BTC), Ethereum (ETH), XRP, and other major digital assets fell ahead of the U.S. Federal Reserve’s upcoming interest rate announcement.

The sudden decline wiped out roughly $80 billion from the total crypto market capitalisation in just a few hours.

Bitcoin Slides After Failing to Break Resistance

Bitcoin entered the week with strong momentum, climbing to $65,600 twice on Monday after holding above $64,000 throughout the weekend. However, both breakout attempts were rejected, with the second triggering an aggressive wave of selling.

The flagship cryptocurrency subsequently fell nearly $3,000 within hours, dropping to around $63,000, its lowest level in roughly ten days.

Market analyst CRYPTOWZRD said Bitcoin’s latest daily close turned bearish and warned that maintaining support around $63,000 is now crucial. A sustained break below that level, the analyst suggested, could open the door to fresh local lows.

Altcoins Follow Bitcoin Lower

The broader altcoin market also reversed sharply after Monday’s gains.

Ethereum, which had rallied to a two-month high near $1,980, surrendered roughly $100 and slipped back below $1,900.

XRP declined around 4.5%, falling beneath the key $1.10 support level to trade near $1.06. Solana (SOL) posted similar losses, while HYPE recorded one of the steepest declines among major assets, dropping approximately 6%.

Leveraged Traders Hit Hard

The broad market downturn proved especially painful for leveraged traders.

More than 165,000 positions were liquidated over the past 24 hours, with total forced liquidations approaching $700 million. As expected, Bitcoin and Ethereum accounted for the largest share of those losses.

Markets Turn Cautious Ahead of FOMC

The sell-off comes just one day before the U.S. Federal Reserve is set to announce its latest monetary policy decision.

With investors uncertain about the central bank’s next move on interest rates, risk-sensitive assets including cryptocurrencies have come under renewed pressure as traders reduce exposure ahead of the closely watched announcement.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Ethereum (ETH) could rally to $20,000 or more in the current market cycle, according to pseudonymous analyst CrediBULL Crypto, who has reiterated a prediction he first made when the asset was trading near $1,500.

The trader believes Ethereum is completing a multi-year accumulation phase against Bitcoin (BTC), setting the stage for what he sees as its first major bull run since 2017.

Why the Analyst Expects a $20K ETH

Responding to another market commentator’s prediction that ETH could reach $10,000, CrediBULL doubled down with a “$20K+” forecast, pointing to a detailed video analysis rather than treating the target as mere speculation.

In the video, the analyst argued that $10,000 represents a conservative target, while a move to $20,000 remains well within reason.

“I’ve always said $10K is the absolute minimum. I think $20K is realistic. I’m not saying it’s guaranteed, but it’s a very reasonable target.”

According to CrediBULL, Ethereum has spent several years lagging behind Bitcoin, pushing sentiment to levels typically associated with market bottoms. He believes the ETH/BTC chart has now entered a long-term accumulation zone after roughly four years of decline, creating the foundation for a sustained bullish trend.

Technical Structure Points to Further Upside

Looking at the ETH/USD chart, the trader said Ethereum has already completed the first stage of a broader five-wave Elliott Wave structure while continuing to hold above a key invalidation level around $1,385.

If that support remains intact, he expects the next advance to drive ETH towards $10,000 before a later wave potentially lifts the cryptocurrency beyond $20,000.

He also noted that historical ETH/BTC ratios support similar price projections, particularly if Bitcoin revisits previous record highs or extends its broader bull market.

CrediBULL compared the current setup with April last year, when Ethereum traded around similar price levels and many investors believed its cycle had ended. Instead, the asset later surged to fresh all-time highs. He argues today’s market structure shares those characteristics, with ETH maintaining support above its previous low instead of breaking below it, a signal he views as evidence that the longer-term uptrend remains intact.

Traders Split on the Forecast

Not everyone agrees with the bullish outlook.

Trader Saiyan also expects Ethereum to reach at least $10,000 this cycle, but Cheds Trading dismissed the idea outright, saying such a move is unlikely.

On the other hand, analyst Sykodelik backed the optimistic case, arguing that a five-figure ETH price should not be considered unrealistic, noting that $10,000 is only around twice Ethereum’s previous all-time high.

Ethereum’s Current Position

At the time of writing, Ethereum was trading above $1,900 after gaining nearly 4% over the previous 24 hours and roughly 24% during the past month.

Despite the recovery, ETH remains about 60% below its all-time high.

Several other analysts have also identified signs that the asset may have already formed a market bottom. Analyst NoName recently pointed to a series of four lower highs as evidence that the bear market could be over, while Ali Martinez highlighted a bullish crossover in Ethereum’s MVRV ratio.

Meanwhile, Binance funding rates have climbed to their highest level in six months. According to CryptoQuant, the increase suggests trader sentiment is improving, even though Ethereum’s price remains well below levels seen around the same period last year.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Bitcoin finished the first six months of 2026 around $60,000 after declining roughly 32% since the start of the year. According to Binance Research, the cryptocurrency’s performance reflects one of the toughest market environments in recent years, with macroeconomic headwinds continuing to outweigh crypto specific catalysts.

The report also notes that Bitcoin has now lost more than 50% of its value since reaching an all time high of nearly $126,000 in October 2025. It has remained below that peak for 275 consecutive days, highlighting the length and severity of the current downturn.

On Chain Data Suggests Capitulation

Binance Research found that 10.83 million BTC ended the first half of the year sitting at an unrealised loss, while only 9.22 million BTC remained in profit.

This marks the first time during the current market cycle that coins held at a loss have outnumbered those in profit, a milestone analysts often monitor closely.

Historically, similar crossovers have occurred near major Bitcoin market bottoms before prices eventually recovered. However, Binance Research cautioned that past trends should not be viewed as a guarantee that the current cycle will follow the same path.

Macroeconomic Forces Continue to Dominate

Rather than blaming crypto specific issues, Binance attributed Bitcoin’s weak performance largely to broader economic conditions.

The report said investors shifted their focus away from liquidity driven optimism toward underlying economic fundamentals as central banks maintained restrictive monetary policies throughout the first half of 2026.

Expectations for interest rate cuts also weakened significantly. Instead, futures markets began pricing in an 80% probability that the US Federal Reserve would raise interest rates once more before the end of the year, adding further pressure to financial markets.

Strong Dollar and Higher Yields Weigh on Bitcoin

Binance Research identified higher real bond yields, a stronger US dollar, and tighter liquidity as the main factors limiting Bitcoin’s performance.

While technology stocks benefited from continued enthusiasm surrounding artificial intelligence, Bitcoin underperformed many major asset classes over the same period.

The report also pointed to the resilience of the US economy, which reduced expectations for near term interest rate cuts. Artificial intelligence remained a major contributor to economic growth during the first quarter, while core PCE inflation climbed to 3.4%, its highest level since late 2023, reinforcing concerns that inflation remains persistent.

The challenging macroeconomic backdrop also dampened institutional demand for cryptocurrencies. During the first half of 2026, US spot Bitcoin exchange traded funds recorded net outflows totalling $5.4 billion, reflecting weaker investor appetite despite Bitcoin’s prolonged correction.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic