Crypto Rallies on Softer Inflation; MSTR Pauses BTC Buys

Leading cryptocurrencies rallied alongside equities following cooler-than-expected inflation numbers, with Bitcoin ($BTC) gaining +3.50% to $64,752.40 and briefly hitting $65,000 for the first time in over three weeks. Ethereum ($ETH) outperformed with a +4.72% gain to $1,876.36, while $XRP rose +3.52% to $1.10. The weaker June inflation data reduced expectations that the Federal Reserve would hike interest rates this year, supporting demand for risk assets including digital currencies. Shares of crypto-linked companies traded higher amid the prospect of a less restrictive monetary policy.

Strategy Inc. ($MSTR) introduced a Bitcoin Banking Adoption Index aimed at tracking how traditional financial institutions engage with Bitcoin, while pausing new Bitcoin purchases to build a larger cash reserve. The company raised $467 million and is building a $3 billion cash reserve through stock issuance, marking a material shift in treasury approach for the firm best known for its Bitcoin holdings. Coinbase Global ($COIN) faced pressure from multiple analysts, with JPMorgan cutting estimates citing competitive headwinds from crypto exchange Hyperliquid's partnership arrangements impacting stablecoin business. A poll by Coinbase CEO Brian Armstrong showed 56.3 percent of approximately 27,000 respondents expect further Bitcoin declines, with only 43.7 percent believing the bottom is in.

U.S. lawmakers are advancing the CLARITY Act, with an imminent House hearing and a possible Senate vote that could reshape federal oversight of crypto platforms. The Act would introduce extensive regulatory requirements for exchanges and custodians, directly affecting Coinbase Global ($COIN) and its U.S. operations. Growing political support and high-profile commentary are increasing expectations that the CLARITY Act could move quickly through Congress. The legislative momentum represents a potential shift toward comprehensive regulatory clarity for digital asset platforms operating in the United States.

Ripple joined the x402 Foundation to advance XRP and RLUSD AI payments, with the XRP Ledger surpassing one million agentic transactions at a fixed cost of $0.0002 each. The foundation includes 40 Premier Members such as AWS, Google, Visa, Mastercard, Stripe, Circle, and Coinbase ($COIN). Meanwhile, Mizuho downgraded Circle and JPMorgan cut estimates for both Circle Internet Group and $COIN, citing factors impacting the economics of Circle's USDC stablecoin. The downgrades reflect mounting competitive pressure in the stablecoin market as new entrants and partnership arrangements challenge incumbent providers' business models.

Robinhood ($HOOD) launched a new blockchain, with its Robinhood Chain topping DEX charts on memecoin trading. Artemis warned that the chain's biggest success may also be its greatest risk, as Jon Ma cautioned the memecoin boom could threaten its tokenized stock ambitions. Binance announced plans to become a "super app" for digital assets, signaling expansion beyond its core exchange business. CleanSpark, Inc. ($CLSK) disclosed a 20-year lease agreement for high-performance compute data center development, diversifying infrastructure beyond Bitcoin mining operations.

Market participants are watching whether Bitcoin can sustain levels above $65,000 as Federal Reserve policy expectations continue to evolve. The CLARITY Act's progress through Congress could provide regulatory clarity that shapes institutional adoption decisions in coming months. Stablecoin economics remain under pressure as competitive dynamics intensify, with Circle facing analyst downgrades that may signal broader industry margin compression. Strategy's ($MSTR) shift to cash accumulation rather than Bitcoin purchases represents a notable change in approach for a company that has positioned itself as a corporate Bitcoin treasury standard.