Crypto Summary (07/16): BTC Nears $120k, ETH Soars, and 'Crypto Week' in the US Stirs the Market
The cryptocurrency market is experiencing a day of strong optimism this Wednesday, July 16, 2025. With the total market capitalization approaching $3.7 trillion, the spotlight is on Bitcoin, which is flirting with the $120,000 mark, and Ethereum, which has soared by more than 6%. The good mood is driven by a combination of strong institutional demand via ETFs and positive expectations surrounding "Crypto Week" in the US Congress.
7/16/20253 min read
Crypto Summary (07/16): BTC Nears $120k, ETH Soars, and 'Crypto Week' in the US Stirs the Market
The cryptocurrency market is experiencing a day of strong optimism this Wednesday, July 16, 2025. With the total market capitalization approaching $3.7 trillion, the spotlight is on Bitcoin, which is flirting with the $120,000 mark, and Ethereum, which has soared by more than 6%. The good mood is driven by a combination of strong institutional demand via ETFs and positive expectations surrounding "Crypto Week" in the US Congress.
However, the day also brings important news on regulation in Brazil, the contrasting resilience of the DeFi and NFT markets, and a serious security alert with the hack of a major exchange. Check out the complete analysis of the day's main events below.
Market on the Rise: Bitcoin Flirts with $120k and Altcoins Soar
The general market sentiment is bullish, with most major assets posting significant gains.
Price Performance and Key Levels
Bitcoin (BTC): Up ~2%, trading in the $118-119k range. The $115k mark acts as immediate support, while a break of the $120k resistance could pave the way for new all-time highs.
Ethereum (ETH): Shows even stronger performance, with a ~6-7% rise, surpassing the $3,100 mark for the first time since February.
Altcoins: Follow the rally, with Solana (SOL) at $167 (+6%), XRP at nearly $3.00 (+4%), and Binance Coin (BNB) near $700 (+2%).
Crypto Resilience in the Face of Inflation Data
Even with US consumer inflation data coming in slightly hotter than expected, which strengthened the dollar and pressured stock markets, the crypto market showed remarkable resilience. Analysts attribute this strength to three main factors: abundant global liquidity, record flows into spot Bitcoin ETFs, and growing regulatory optimism.
The Unstoppable Force of ETFs
Institutional demand continues to be the market's main engine. This week alone, spot Bitcoin ETFs in the US have seen net inflows of about $700 million. The imbalance between ETF demand (absorbing ~8,200 BTC per day) and new mining supply (~450 BTC per day) helps explain the strong upward pressure on prices.
The World Watches Regulation: Progress and Challenges in Brazil and the US
The regulatory landscape was a central theme of the day, with important developments in several jurisdictions.
Brazil: "Brasil Seguro" Program and the Shadow of the IOF Tax
In Brazil, the government is discussing the creation of the "Brasil Seguro" (Secure Brazil) program to closely monitor exchanges and fintechs, a direct response to a recent massive cyberattack on the Pix payment system. Additionally, a proposal to tax crypto operations via the IOF (a financial transactions tax) is gaining traction, sparking debate about a potential tax burden increase on the sector.
"Crypto Week" in the US: The Future of Stablecoins and Regulatory Disputes
In the US, Congress has declared "Crypto Week," putting crucial bills on the agenda to define a framework for stablecoins and clarify responsibilities between the SEC and CFTC. Despite a temporary political blockade, the general expectation is for approval, with Donald Trump himself signaling optimism. One notable proposal, the GENIUS Act, could ban interest-bearing stablecoins, which would have direct implications for the DeFi market.
A Boiling Ecosystem: DeFi, NFTs, and Institutional Adoption
DeFi Reaches New TVL Records, with Aave in the Lead The Total Value Locked (TVL) in DeFi has reached historic levels, surpassing $130 billion. The Aave lending protocol has solidified its position as the absolute leader, with over $26 billion in TVL and the launch of its V4, focused on real-world assets (RWA).
The Contrast of NFTs: A Bear Market with Pockets of Success The NFT market is experiencing a moment of contrast. While trading volumes have plummeted 80% in a year, one-off events show there is still demand: rapper Snoop Dogg's new collection on the TON network sold out in 30 minutes, raising $12 million. Additionally, Yuga Labs sold the intellectual property of the famous Moonbirds collection, indicating a consolidation phase in the sector.
Accelerated Institutional Adoption: From Corporate Treasuries to Strategic Partnerships Big players continue to enter the market. Cantor Fitzgerald revealed talks to acquire $3 billion in Bitcoin for clients, Polkadot partnered with ABCripto in Brazil to foster Web3 education, and Talos acquired the on-chain data firm Coin Metrics for over $100 million.
The Dark Side: $27 Million Hack at BigONE and the Focus on Security
A serious reminder of the sector's risks came with the news of the BigONE exchange hack, which resulted in the theft of approximately $27 million in various crypto assets. The attack, attributed to a vulnerability in the server infrastructure, reinforces that security remains a critical challenge, with 2025 on track to be another record year for losses from cyberattacks.
Conclusion: A Day of Structural Optimism with Risk Alerts
July 16, 2025, painted a clear picture of the current crypto market: strong optimism driven by institutional demand and regulatory progress, which sustains prices at high levels. The resilience of Bitcoin and the strong performance of Ethereum are proof of this confidence. However, risks remain, whether in the form of a still-uncertain regulatory landscape or, more urgently, the constant threat to platform security. Navigating this environment requires a balance between seizing the bullish momentum and managing the inherent risks of a rapidly evolving ecosystem.