Andreessen Horowitz urged the US Senate Banking Committee to scrap the “ancillary asset” concept in draft crypto legislation, warning of loopholes.

Andreessen Horowitz warns of loopholes in draft crypto rules

Bitcoin’s latest push towards $120,000 fizzled into a stall-out that now 
resembles a “failed breakout zone,” according to market analytics firm 
Swissblock. In a July 31 thread, the firm said “momentum has failed to 
ignite,” arguing that realized-profit flows and an overwhelming share of coins 
sitting in profit have turned every bounce into an opportunity for supply to 
meet price. Profit-Taking Cools Bitcoin Rally Swissblock framed the setback as 
a pause rather than a breakdown. “Profit-taking is rising—but not as intense 
as late 2024,” the firm wrote, adding that the effect through July was “enough 
to cap upside and trigger consolidation.” The tone is cooling, not 
capitulatory: “Selling pressure is visible, but not extreme—think cooling, not 
capitulation.” That diagnosis hinges on on-chain readings of realized 
profit—an input that tends to expand into rallies as long-held coins are spent 
into strength—and a market structure in which bids are absorbing supply rather 
than being overwhelmed by it. Related Reading: Bitcoin New Investor Dominance 
Rises – No Signs of Mass Profit-Taking Yet The most striking datapoint in the 
thread is breadth of profitability: “96% of supply is in profit,” Swissblock 
noted, citing Glassnode. That ratio is historically consistent with late-cycle 
euphoria, but it is also mechanically self-limiting; when nearly all holders 
are in the green, latent sell pressure rises because “unrealized gains are 
tempting sellers.” As Swissblock put it, “Strong holders remain. But 
unrealized gains are tempting sellers. Until demand returns, each bounce 
invites supply.” The firm contends the broader trend “is intact—but momentum 
needs a reset.” Beyond on-chain realized flows, the firm’s composite 
fundamentals read neutral with improving liquidity. “BTC fundamentals are 
strong and stable,” Swissblock wrote, pointing to a Bitcoin Fundamentals Index 
reading of 60 (neutral), “Network Growth is cooling,” and “Liquidity is 
recovering.” That mix typically favors range behavior over directional 
surges—“a consolidation-supportive environment,” as the post put it—in which 
Bitcoin “can grind sideways longer—until it’s ready to break with conviction.” 
The implication is that the market’s “failed breakout” risk reflects timing 
rather than trend reversal: positioning and liquidity are not aligned yet for 
a sustained continuation. Related Reading: Weak Bitcoin Treasury Companies 
Will Be Crushed By Bear Market, Insider Warns The cross-asset context is 
equally nuanced. “Altseason is active—but under stress,” Swissblock wrote, 
observing that while “$ETH continues to outperform BTC structurally, holding 
up better in this pullback,” most altcoins are sagging, with “only 5% of top 
100 showing positive impulse.” That thinning rotation underlines the 
selectivity of risk appetite and the fragility of momentum outside of the 
largest names. Historically, that pattern often precedes a decisive move in 
Bitcoin that either recharges the rotation or breaks it. Swissblock’s 
concluding assessment leans cautiously constructive. “Profit-taking is fading 
and selling pressure is being absorbed. BTC is preparing for breakout—but 
momentum needs to align.” Until that alignment arrives, the firm expects a 
grind: bids continue to meet supply from profitable holders, realized profits 
moderate, and liquidity improves in the background. If and when Bitcoin flips 
momentum back to positive, Swissblock argues, the spillover could be forceful: 
“While BTC grinds sideways, watch for the moment it flips—ETH and altcoins 
will likely explode upward when it does.” In short, today’s dip to $115,000 
looks less like an outright rejection than a test of the market’s ability to 
digest profits and reset momentum without damage to the underlying uptrend. 
With 96% of supply in profit and breadth compressed, the next impulse likely 
hinges on whether liquidity and demand can reassert themselves before profit- 
taking reaccelerates. For now, Swissblock’s message is clear: the breakout 
will need to be earned, not assumed. At press time, BTC traded at $115,452. 
Featured image created with DALL.E, chart from TradingView.com

Bitcoin Fakeout? Research Firm Says Momentum Just Flipped Bearish

DeFi Education Fund called on the Senate Banking Committee to frame a key 
crypto market bill in a more tech-neutral way and strengthen crypto developer 
protections in a recent letter.

DeFi Education Fund urges Senate to strengthen crypto dev protections in draft bill

XRP has overtaken ethereum as Coinbase’s top revenue-generating asset, fueled 
by surging trading volumes, regulatory clarity, and an aggressive expansion 
into U.S. crypto derivatives. XRP Tops ETH on Coinbase With Blazing Revenue 
and a Derivatives Wave Incoming Crypto exchange Coinbase (Nasdaq: COIN) 
disclosed in its Form 10-Q filed with the U.S. Securities and Exchange 
Commission […]

XRP Overtakes ETH on Coinbase as Revenue Surges and Futures Catch Fire

Ethereum (ETH) dropped over 6% in the past 24 hours, sliding to around $3,630 
after briefly touching the $3,800 mark. Related Reading: XRP Breakout Targets 
$15—Analyst Says ‘This Is Just The Start’ The pullback comes after a robust 
July rally, which saw the world’s second-largest cryptocurrency surge more 
than 50%, its best monthly gain in three years. Despite the recent dip, on- 
chain data suggests the uptrend may not be over. Glassnode’s latest analysis 
points to a potential new all-time high (ATH) of $4,900, fueled by bullish 
investor sentiment, growing ETF inflows, and rising open interest (OI) in 
futures markets. Glassnode Points to a $4,900 Ethereum Target According to 
Glassnode, Ethereum is trading near its March 2024 levels, yet unrealized 
profits remain comparatively lower. This divergence implies a large upside 
potential as investors are not yet cashing out, signaling confidence in 
further gains. The firm’s analysis shows that if unrealized profits reach the 
same levels as in 2024, ETH would likely climb toward $4,900, marking a new 
ATH and testing the critical psychological resistance at $5,000. This could 
reflect a growing shift in how investors treat Ethereum, from a speculative 
token to a core financial asset. ETH&#8217;s price records a small decline on the 
daily chart. Source: ETHUSD on Tradingview Open Interest and ETF Demand 
Reinforce Bullish Outlook Rising open interest further supports Ethereum’s 
bullish case. Crypto futures data indicates that more traders are opening long 
positions on ETH, reflecting expectations of further upside. Ethereum’s OI has 
been a key contributor to the broader altcoin market rebound. Moreover, spot 
Ethereum ETFs, especially BlackRock’s iShares Ethereum ETF, saw over $4 
billion in inflows in July 2025, pushing total ETH ETF holdings to $21.85 
billion. The surge underscores Ethereum’s rising status among institutional 
investors and may amplify future price movements. Related Reading: Coinbase 
Bitcoin Premium Just Turned Red For The First Time Since May — What This Means 
With Ethereum facing resistance at $4,000, the convergence of strong 
technicals, investor optimism, and institutional demand paints a promising 
outlook. If momentum continues, ETH may soon chart new territory above its 
previous highs. Cover image from ChatGPT, ETHUSD chart from Tradingview

Ethereum Drops 6% After Hitting $3,800, But Analysts See New ATH Ahead

Crypto ETFs has taken a massive leap forward as SEC approval of in-kind 
mechanisms slashes costs, boosts efficiency, and propels digital assets deeper 
into mainstream finance. Bitwise Hails SEC Approval of In-Kind Mechanism as 
Pivotal for Crypto ETFs Asset management firm Bitwise explained on July 30 via 
social media platform X why the U.S. Securities […]