The stablecoin market has lost more than $10 billion since May, but the outflow is not a sign of panic. Instead, money is rotating into memecoins as traders chase higher returns on Robinhood chain, while Bitcoin and Ethereum prices hold firm around $63,000 and $1,800 respectively. The upcoming CLARITY Act, expected to reach Congress as early as July 17, is driving regulatory optimism and supporting price sentiment.
CLARITY Act Progress Lifts Bitcoin Price Sentiment
The CLARITY Act could be unveiled next week, giving the crypto industry one of its biggest regulatory milestones in years. Supporters believe the proposal will finally clarify which digital assets are securities and which are commodities, removing a major source of uncertainty. Bitcoin briefly slipped below $63,000 over the weekend due to geopolitical tensions, triggering over $14 million in long liquidations, but buyers quickly stepped in to stabilize the price in the $63,000 to $64,000 range.
Fresh demand is emerging from U.S. buyers, with the Coinbase Premium Index climbing back toward neutral after 55 consecutive days in negative territory. Spot Bitcoin ETFs also recorded net inflows after nine weeks of withdrawals, giving bulls additional confidence. However, Fidelity's Jurrien Timmer expects one more shakeout before the next rally, with $60,000 acting as the bottom. Michael Saylor fueled speculation of another purchase after sharing his latest Bitcoin tracker update, while a separate proposal called BIP 110, which would limit arbitrary data in Bitcoin transactions, has drawn criticism from Adam Back and Saylor for potentially splitting the community.
Ethereum Price Draws Institutional Attention
Ethereum price has been trading in a tight range around $1,800 despite a quiet weekend. Institutional interest remains strong, with Tom Lee of Fundstrat describing Ethereum as the foundation for the coming AI economy at WebX 2026. Lee's firm, Bitmine, now holds 5.74 million ETH—about 4.8% of total supply—and plans to increase its stake. Ethereum whales also bought another $20.6 million worth of ETH after several days of exchange outflows.
Network development continues to advance. The Ethereum Foundation confirmed that one of its AI agents detected a validator crashing bug before human researchers verified the issue. A separate Cambridge study found that Ethereum's shift to Proof of Stake reduced electricity consumption by more than 99.9%, strengthening its appeal among sustainability-focused institutions. The next few days could prove important as the market watches the CLARITY Act for regulatory progress and tracks institutional buying across both major coins.
Japan and Geopolitical Factors
Japan added to the optimism during WebX 2026, with Prime Minister Sanae Takaichi pledging stronger backing for Web3 through funding and friendlier policies. Meanwhile, geopolitical tensions, particularly around the Strait of Hormuz and Iran, rattled markets over the weekend, but the impact on crypto was short-lived. The move out of stablecoins appears to be a rotation into higher-upside assets rather than an exit from crypto, as both Bitcoin and Ethereum continue to find support from long-term buyers.