The cryptocurrency market showed strong signs of recovery in mid-2025, with both Bitcoin and Ethereum prices climbing above key investor cost thresholds. This momentum reflects growing institutional interest, regulatory developments, and expanding global adoption. In this comprehensive analysis, we explore the latest market trends, on-chain data, exchange activity, and macroeconomic factors shaping the digital asset landscape.
Market Performance: Bullish Momentum Returns
As of July 20, 2025, the total global cryptocurrency market capitalization reached $2.43 trillion, marking a notable rebound from the previous week. Bitcoin maintained its dominance at 54.1%, while Ethereum held a solid 17.3% share of the market.
Bitcoin surged to $66,700 per coin**, reflecting a 15.2% weekly gain. Ethereum followed closely with a price of **$3,500, up 11.9% over the same period. These gains pushed Bitcoin’s value above both short-term and long-term holder cost bases—critical psychological and technical support levels.
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Investor Cost Basis Analysis
According to Glassnode data as of July 19, 2025:
- Short-term holders (those owning BTC for less than 155 days) have an average cost basis of $64,700.
- Long-term holders (ownership exceeding 155 days) entered the market at an average price of $20,000.
With Bitcoin trading above both thresholds, it signals confidence among newer investors and reduces immediate selling pressure from loss-making positions. This alignment often precedes extended bullish phases in previous market cycles.
Trading Activity and Exchange Trends
Year-to-date trading volume across all cryptocurrencies hit $16.5 trillion, representing an 89.9% year-over-year increase—highlighting rising liquidity and participation.
Coinbase remains a central hub for institutional and retail activity. From January through July 19, the platform recorded $563.3 billion** in total trading volume—an impressive **123.4% YoY growth**. However, weekly volume dipped slightly to **$142.3 billion between July 13–19, down 6.6% from the prior week, suggesting short-term consolidation.
BTC futures contracts also saw renewed interest, with open interest reaching $33.88 billion as of July 19—indicating increasing leverage usage and market depth.
Stablecoin Market Dynamics
Stablecoins continue to serve as a barometer for crypto market health. The combined market cap of USDT, USDC, and DAI rose to $153.1 billion, signaling sustained on-chain liquidity.
However, spot trading volume involving stablecoins declined for the third consecutive month, falling 18% in June to $970 billion—the lowest level in seven months on centralized exchanges (CEX). Despite this pullback, USDT maintained dominance with 78.4% of top-10 stablecoin trading volume.
Institutional Developments: ETFs and Listings
Spot Ethereum ETF Fee Structures Finalized
A major milestone was reached with the disclosure of management fees for all nine approved spot Ethereum ETFs:
- Franklin Rayliant: 0.19% (fee waiver until Jan 31, 2025 or first $10B AUM)
- Bitwise: 0.20% (0% for first $500M or 6 months)
- VanEck: 0.20% (0% for first $1.5B or 12 months)
- 21Shares: 0.21% (0% for first $500M or 12 months)
- BlackRock (ETHA): 0.25% (0.12% for first $2.5B or 12 months)
- Fidelity (FETH): 0.25% (fully waived in 2025)
- Invesco Galaxy (QETH): 0.25%
- Grayscale Mini ETF (ETH): 0.25%
- Grayscale Main Trust (ETHE): 2.50%
These competitive pricing models suggest aggressive positioning to capture inflows, particularly from cost-sensitive institutional investors.
Grayscale Ethereum Trust Set for NYSE Arca Listing
Grayscale is set to convert its Ethereum Trust into an exchange-traded product, scheduled to list on NYSE Arca on July 23, 2025. This transition enhances liquidity and aligns GETH with other spot ETFs, potentially unlocking new capital flows.
Mining Ecosystem: Hash Rate and Miner Behavior
Bitcoin mining continues to evolve rapidly:
- Network hashrate averaged 594.41 EH/s (July 13–19), up 2.0% week-over-week.
- Mining difficulty rose to an average of 79.86 T, indicating increased competition and network security.
Miners are holding less BTC than before—wallet balances dropped to 1.7926 million BTC, maintaining a downward trend since early 2025. This suggests ongoing sell pressure from miners covering operational costs or deleveraging after recent upgrades.
U.S.-listed mining firms now control 26.6% of global hash rate, a record high. In June alone, their combined capacity grew by 17 EH/s, led by Riot Platforms, Bitfarms, and CleanSpark. Cipher Mining outperformed with a 44% stock gain during the period.
Global Regulatory and Adoption Trends
Russia Advances Crypto Framework
Russia took significant steps toward formalizing its crypto sector:
- The Duma approved a draft law regulating Bitcoin mining.
- The government will collaborate with the central bank to create rules for individuals and mining pools.
- President Putin confirmed that crypto mining consumes 1.6% of national electricity, signaling official recognition of the industry's scale.
Additionally, Russia’s Finance Ministry proposed allowing licensed exchanges like Moscow Exchange to offer crypto trading services for qualified investors.
France Launches First Bitcoin ETN for Pension Funds
VanEck partnered with Inter Invest to launch VBTC, France’s first Bitcoin exchange-traded note (ETN) designed for pension plans. This marks a pivotal moment in mainstream financial integration, enabling retirement funds to gain regulated exposure to digital assets.
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Hong Kong Introduces Asia’s First Bitcoin Inverse Product
On July 23, Hong Kong Exchange launched the CSOP Bitcoin Futures Daily Inverse (-1x) Product (7376.HK)—the first inverse BTC instrument in Asia. It tracks short positions in CME-traded Bitcoin futures, offering sophisticated hedging tools for regional investors.
User Growth and Public Engagement
Adoption continues to accelerate worldwide:
- An estimated 562 million people now own cryptocurrency—a 33% increase from 2024.
- Asia leads with 326.8 million holders, up 21.8% year-on-year.
- The UAE has the highest adoption rate globally—25.3% of its population owns crypto.
- The 24–35 age group shows the highest ownership across regions.
Notably, former U.S. President Donald Trump announced plans to launch his fourth NFT collection, reaffirming his engagement with blockchain technology. He also headlined the 2025 Bitcoin Conference in Nashville, accepting crypto payments for event access—a symbolic endorsement of digital currencies in mainstream finance.
Mt. Gox trustee Nobuaki Kobayashi reported repayment to over 13,000 creditors with more distributions planned—marking progress in resolving one of crypto’s longest-standing legal cases.
Macroeconomic Context
External liquidity conditions remain tight:
- Combined M2 growth across the U.S., China, Japan, and Eurozone was just +0.9% YoY in May, up slightly by 1.61 percentage points.
- The U.S. Dollar Index rose to 104.37.
- The 10-year Treasury yield increased to 4.25%, reflecting higher interest rate expectations.
These macro trends suggest limited risk appetite for speculative assets unless inflation moderates further or rate cuts materialize later in the year.
Frequently Asked Questions
What does it mean when Bitcoin trades above short-term holder cost basis?
When Bitcoin exceeds the average purchase price of short-term holders (~$64,700), it reduces panic selling risks and signals positive sentiment among recent buyers who are now in profit.
Why are spot Ethereum ETF fees important?
Lower fees attract more institutional investors by reducing holding costs. Competitive pricing (e.g., Franklin at 0.19%) increases fund attractiveness and can drive significant asset inflows post-launch.
How does miner selling pressure affect Bitcoin price?
When miners sell BTC to cover electricity and hardware costs—especially during high difficulty periods—it increases supply pressure. A declining miner balance may indicate continued sell-offs until profitability stabilizes.
Is the rise in U.S. mining hash rate bullish for Bitcoin?
Yes. Increased U.S.-based mining improves network decentralization and regulatory clarity. Record capacity additions signal strong long-term confidence in Bitcoin’s value proposition.
What impact do pension funds investing in crypto have?
Pension fund participation brings stable, long-term capital into the ecosystem. The launch of France’s Bitcoin ETN opens doors for trillions in retirement assets to gain regulated exposure over time.
How reliable is global crypto ownership data?
Triple-A uses blockchain analytics, exchange data, surveys, and wallet tracking to estimate adoption. While not perfect, their methodology provides one of the most widely accepted benchmarks in the industry.
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