BTC Eyes All-Time Highs, Solana ETF Sparks Institutional Flows, and Macro Tailwinds Build Across Risk Assets

This past week marked a pivotal turning point for the crypto market, with bullish sentiment returning in force across both digital and traditional assets. Bitcoin led the charge, reclaiming the $110K level for the first time in three weeks as ETF-driven inflows continued and macro conditions stabilized. Institutional investors leaned back into risk, driving gains not only in BTC and ETH, but also across key altcoins like Solana, which rallied more than 16% following the successful debut of its first U.S.-listed spot ETF.

Over the weekend, the crypto market maintained its upward momentum, with BTC consolidating near $109K and ETH holding above $2,500. Altcoins continued to rotate higher, led by sustained demand in SOL, while overall market volume and open interest remained elevated - suggesting healthy institutional participation heading into next week.

The risk-on tone wasn’t confined to crypto. The S&P 500 and Nasdaq both climbed to all-time highs, rising 2% and 2.4% respectively, while the Dollar Index (DXY) fell modestly by 0.2% as U.S. jobs data reinforced the soft-landing narrative and markets recalibrated expectations for Fed rate cuts.

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Bitcoin Regains Strength as Institutional Tailwinds Grow

Bitcoin ended the week with a strong +9% gain, reaching a high of $110,279, signalling a return of confidence after its temporary dip below $100K. The resurgence was fuelled by continued institutional demand, particularly through ETFs. BlackRock’s iShares Bitcoin Trust now holds 696,874 BTC (valued around $74B), underscoring persistent inflows and long-term positioning.

Adding to the bullish tone, Standard Chartered upgraded its BTC forecast, now targeting $135K by Q3 and $200K by year-end. The bank cited consistent ETF demand, corporate balance sheet buying, a maturing regulatory backdrop, and the possibility of rate cuts as key tailwinds heading into the second half of 2025.

This optimism comes amid renewed focus on long-dormant Bitcoin wallets, with on-chain analysts tracking the reactivation of eight addresses from the early 2010s totalling over 80,000 BTC. While the movement briefly drew attention due to the scale and historical significance, market impact was muted, and analysts largely view it as a structural transfer rather than a signal of selling pressure.

Nothing exciting to report from options world. Volatility remains rather subdued, both implied as well as realised. Skew is fairly flat, and in grand scheme of things shows little to none directional bias. For those with a stronger view, directional plays might offer value here, but timing will be a crucial component of success, given very lacklustre realized volatility. ETH catch up topside plays probably warrant a closer look.

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Bitcoin’s Institutional Breakthrough

BlackRock’s iShares Bitcoin Trust (IBIT) made headlines of its own this week, becoming more profitable than the firm’s flagship S&P 500 ETF - a moment of symbolic significance for Bitcoin’s institutionalization. With over $75B in AUM, IBIT has attracted inflows in 17 of the past 18 months, propelled by demand from hedge funds, pensions, and retail investors following the SEC’s spot ETF approval in January 2024. The fund now ranks among the top 20 ETFs globally by trading volume, and its performance underscores the deepening conviction that BTC belongs alongside traditional core asset classes.

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Solana ETF Sparks Altcoin Resurgence

Solana was the week’s breakout star, thanks to the launch of the SSKETF, the first U.S. ETF offering direct SOL exposure with staking rewards. Listed on the Cboe BZX Exchange, the fund drew $12million in net inflows and $33 million in first day trading volume, outpacing earlier XRP and SOL futures ETF launches. The momentum wasn’t limited to spot markets. CME Solana futures open interest surged to $167 million, a new all-time high, highlighting the growing institutional demand. SOL itself climbed 3.6% in a single day and closed the week up 16%,reinforcing its position as the go-to altcoin for active managers.

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Altcoins Find a Place on Corporate Balance Sheets

Public companies continued to embrace digital assets as treasury instruments, particularly those offering staking yield and DeFi access. Recent disclosures include:

• DeFi Dev Corp (formerly Janover): Raised $24M to accumulate SOL
• SOL Strategies: Holds 395,000 SOL
• Upexi: Raised $100M to acquire 735,692 SOL, backed by GSR
• SharpLink Gaming: Partnered with Consensus to purchase 188,478 ETH, making it the second-largest ETH holder globally, behind only the Ethereum Foundation

Several firms are also exploring creative treasury allocations into BNB,XRP, highlighting the expanding scope of crypto’s strategic utility.

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Macro & Policy Recap: Central Bankers Urge Patience

Federal Reserve Chair Jerome Powell spoke at the ECB Forum this week, reiterating that the U.S. economy is “in a good place” and that a majority of FOMC members support a rate cut later this year. While a July cut remains unlikely, markets now price in a ~80% chance of easing by September.

In Europe, inflation data came in steady:

• Headline CPI: 2.0%
• Core CPI: 2.3%
• Services CPI: 3.3%

ECB Chief Economist Philip Lane declared the inflation fight “done,” signalling a pause in July and potential rate relief by fall. The euro gained 0.3%against the dollar following the announcement.

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Labor Data Reinforces Soft Landing Narrative

U.S. employment figures surprised to the upside:

• ADP Employment Change: –33k jobs vs. +98K expected
• Nonfarm Payrolls: +147K vs. +110K expected
• Unemployment Rate: 4.1%
• Average Hourly Earnings: +0.22% MoM / +3.71% YoY
• Jobless Claims: Down to 233K

The weak ADP print raised concerns midweek, but stronger than expected NFP data and falling jobless claims tempered immediate rate cut expectations while reinforcing confidence in the Fed’s soft-landing strategy.

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Regulation & Legal Headlines

Several notable regulatory and legal developments emerged:

• Ripple applied for a U.S. banking license, advancing its push into regulated finance.
• The DOJ disrupted a North Korean crypto-theft operation, seizing29 laundering accounts tied to identity fraud and digital asset thefts.
• The FHFA called for a formal investigation into Fed Chair Powell over allegations of deceptive testimony and budget mismanagement.
• Meanwhile, Congress passed Trump’s $3.4 trillion tax bill, raising the U.S. debt ceiling by $5 trillion and avoiding a potential fiscal crisis.

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Global Trade: New Deals, Old Threats

President Trump signed a 20–40% tariff deal with Vietnam, and warned that similar letters would be sent to other countries beginning July9 if trade deals are not secured. The EU signalled willingness to negotiate, reducing fears of a broader trade war. In response, Chinese equities rallied on signs of improving diplomatic tone.

Elsewhere, gold rose 0.4%, while WTI crude remained flat, as markets await clarity from the upcoming OPEC+ meeting.

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What We’re Watching Next Week

• July 9: U.S. trade deadline (Trump tariff letters expected)
• July 10–17: CPI, PPI inflation reports + FOMC & ECB minutes
• Solana ETF inflows & CME futures open interest trends
• Altcoin treasury adoption and progress on U.S. stable coin bill