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As of July 26, 2025, the cryptocurrency market is experiencing significant developments across various sectors, including regulatory advancements, market fluctuations, and institutional activities.

Regulatory Developments

The U.S. House of Representatives recently passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) with a vote of 308–122. This legislation aims to create a comprehensive regulatory framework for stablecoins, requiring them to be backed one-for-one by U.S. dollars or other low-risk assets. The act establishes stringent standards for reserves, audits, and transparency, marking a significant step toward dual federal and state supervision and consumer protection. President Donald Trump signed the bill into law on July 18, 2025.

Market Fluctuations and Options Expiry

The crypto market has seen notable volatility, with over $15 billion in Bitcoin and Ethereum options contracts expiring on July 25, 2025. This event coincided with a $100 billion drop in total market capitalization within 12 hours, bringing it down to $3.87 trillion. Bitcoin led the losses, dropping 3% to below $116,000, while Ethereum dipped below $3,600. The options expiry included 103,500 Bitcoin contracts valued at $12.6 billion and 733,000 Ethereum contracts worth $2.75 billion. Traders are closely monitoring the market's reaction to this expiry, especially given the previous high of $17 billion in options expiry last month.

Institutional Activities and ETF Inflows

Institutional demand has significantly impacted the market, with spot Bitcoin ETFs receiving substantial inflows. BlackRock's iShares Bitcoin Trust ETF (NASDAQ:IBIT) became the fastest ETF to surpass $80 billion in assets, propelling Bitcoin above $120,000 and reinforcing its position amid growing mainstream adoption. Since the start of 2025, Bitcoin spot ETFs have attracted a staggering $22.7 billion in cumulative inflows, with the majority captured by U.S.-listed funds.

Government Holdings and Strategic Reserves

The United States has established a Strategic Bitcoin Reserve, funded by the Treasury's forfeited Bitcoin, as announced by President Donald Trump in March 2025. This reserve aims to maintain government-owned Bitcoin as a national reserve asset, with the U.S. holding approximately 200,000 BTC as of March 2025. The initiative has sparked mixed reactions, with some economists criticizing the idea, while several states have initiated similar projects.

Global Market Movements

The global crypto market experienced a sharp correction in late July 2025, with Bitcoin and major altcoins suffering significant losses amid heightened volatility. The selloff erased nearly $40 billion in market value within a week, driven by ETF outflows, technical breakdowns, and growing concerns over speculative trading. Bitcoin fell below $118,000, triggering automated sell orders, while Ethereum and XRP dropped over 3% and 10% respectively, marking one of the most abrupt corrections in recent history.

On-Chain Data and Network Activity

On-chain data reveals that nearly 693,000 ETH, approximately $2.6 billion, is queued for unstaking, marking the largest validator exit wave since Ethereum staking began. Additionally, Ethereum set a new all-time high in daily gas use, reaching 162 billion units, with daily active addresses topping 500,000 for two consecutive days, the first time since March 2024. Bitcoin's open interest has reached a new all-time high of $44.5 billion amid a price decline, signaling increased leverage and a higher risk of market volatility and liquidations.

International Developments

South Korea's Ministry of SMEs and Startups announced plans to lift restrictions preventing crypto-related businesses from being classified as venture companies. Under the proposed amendment, crypto startups can access key government benefits, including 50% corporate tax cuts for five years, 75% real estate acquisition tax relief, and broadcast ad discounts up to 70%. This policy shift aims to integrate digital assets into the nation's innovation and startup economy.

Market Outlook

Despite recent volatility, the crypto market shows signs of resilience. Institutional engagement remains strong, with strategic repositioning evident in Bitcoin ETF flows. Major altcoin futures, including Ethereum and Solana, maintain robust interest, reflecting continued optimism around technological advancements and ecosystem expansion. However, investors are advised to remain cautious, as shifting long-short ratios and funding rates indicate defensive positioning amid broader market uncertainties.

In summary, the cryptocurrency market on July 26, 2025, is characterized by significant regulatory advancements, notable market fluctuations, and active institutional participation. While challenges persist, the market's resilience and ongoing developments suggest a dynamic and evolving landscape for digital assets.