Daily Brief: July 26, 2025
Bitcoin Dips, Ethereum ETFs Soar, Legal Trials Heat Up
Galaxy Digital's large-scale Bitcoin sell-off caused significant price drops and trader losses, showing the impact of institutional moves on crypto markets. Meanwhile, Ethereum spot ETFs are gaining traction, with BlackRock's fund reaching $10 billion, highlighting a shift in institutional interest towards Ethereum. The legal trial of Tornado Cash's co-founder Roman Storm raises questions about privacy rights and the legal treatment of open-source software, which could influence the future of blockchain innovation.
💰 Galaxy Digital's Bitcoin Sell-Off Shakes Market
Galaxy Digital recently transferred over 10,000 Bitcoin, valued at about $1.2 billion, to cryptocurrency exchanges. This transfer came from a Satoshi-era whale's address that had been inactive for 14 years. The sudden movement coincided with Bitcoin hitting new highs, causing its price to drop from over $119,000 to below $116,000.
The sell-off continued as Galaxy Digital deposited another 2,850 BTC, increasing market pressure. This led to a sharp decline in Bitcoin's price to $115,125, the lowest since July 10. The event triggered significant liquidations, wiping out $706.66 million in 24 hours, mainly affecting long positions.
Overall, Galaxy Digital's actions pushed Bitcoin's price down to a two-week low of $115,000. Nearly 150,000 leveraged traders faced liquidations, with daily losses reaching up to $515 million. This underscores how institutional moves can significantly impact market stability and trader risk.
Why it matters: This event shows how large-scale institutional sell-offs can drastically affect Bitcoin's price and lead to significant losses for traders, emphasizing the risks in volatile crypto markets.
🚀 Ethereum Spot ETFs Surge with Institutional Interest
BlackRock's Ethereum ETF, known as ETHA, has reached an impressive $10 billion in assets under management. This achievement makes it the third-fastest ETF to reach this milestone, following two Bitcoin ETFs. The fund doubled its assets from $5 billion to $10 billion in just ten days, highlighting strong investor demand.
Ethereum spot ETFs have consistently attracted more capital than their Bitcoin counterparts. Recently, these funds have seen inflows exceeding $3 billion, with a record single-day inflow of $726.7 million. This trend underscores a growing institutional preference for Ethereum-based products.
Despite some profit-taking in mid-July, Ethereum's price has remained relatively stable, bolstered by continuous inflows into these ETFs. The market has seen a 45% monthly gain in ETH prices, although analysts suggest a potential short-term cooling off due to overbought indicators.
Why it matters: The rapid growth of Ethereum spot ETFs signals a significant shift in institutional investor interest, potentially influencing market dynamics and asset price stability in the crypto sector.
⚖️ Tornado Cash Trials: Legal Storms for Developers and Investors
Roman Storm, co-founder of Tornado Cash, is in the spotlight as his trial unfolds. Accused of money laundering and operating an unlicensed money transmitter, Storm's defense team is wrapping up their case. The Ethereum community, including co-founder Vitalik Buterin, has rallied with over $2.8 million for his legal defense. This case raises important questions about privacy rights and the legality of open-source software.
Dragonfly Capital, an early investor in Tornado Cash, faces potential charges from the DOJ. The firm invested in Tornado Cash's developer, PepperSec, in 2020. Despite the legal scrutiny, Tornado Cash remains popular, with $1.9 billion in deposits in early 2024. Dragonfly is committed to defending itself, highlighting the risks for investors in privacy-focused blockchain projects.
Federal prosecutors are considering charges against specific employees of Dragonfly Capital linked to Tornado Cash. Tom Schmidt, a general partner, invoked the Fifth Amendment, refusing to testify to avoid self-incrimination. This development highlights the legal complexities for venture capital firms involved in controversial crypto projects.
Why it matters: This trial could set a precedent for how privacy tools and their developers are treated legally, impacting future blockchain innovations.