CryptoQuant's founder says spot-market demand for Bitcoin is losing momentum, while activity among futures traders remains steady.

Michael Saylor said safeguarding Bitcoin is a collective responsibility, announcing the launch of the Bitcoin Security Consortium backed by $15 million. Founding members include Anchorage Digital, ARK Invest, BlackRock, Block, Blockstream, Coinbase, Fidelity Digital Assets, Galaxy, and Strategy.

Fifteen major companies have joined forces to launch the Bitcoin Security Consortium, committing $15 million over the next three years to bolster Bitcoin's long-term security. The group aims to finance developers and researchers working on core Bitcoin infrastructure, including post-quantum cryptography, and to serve as a public information resource on Bitcoin security. The consortium is being coordinated on a volunteer basis by Brink Executive Director Mike Schmidt. It said it will not steer Bitcoin development or push specific protocol changes, focusing instead on funding, education and support for the existing open-source ecosystem. Participants include Anchorage Digital, ARK Invest, BlackRock, Block, Blockstream, Coinbase, Fidelity Digital Assets and Galaxy.

UK-listed The Smarter Web Company has repaid its $11.7 million convertible instrument with TOBAM around two weeks ahead of schedule after selling 177.89 BTC at an average price of $65,762. The early repayment removes the possibility of issuing 7.7 million shares. CEO Andrew Webley said convertible instruments are "not currently the right capital solution" for the company.

MARKETS: U.S. spot Bitcoin ETFs posted net inflows for a sixth straight session on July 21. Spot XRP ETFs, for their part, have not seen net outflows since July 9.

Key takeaways: BlackRock's iShares Bitcoin Trust (IBIT) led the latest wave of inflows, signaling renewed institutional demand. Grayscale expects the current Bitcoin bear market to potentially persist into September or October if the four-year cycle plays out. On-chain data suggests whales reduced long exposure during the recent rebound. US spot Bitcoin ETFs have posted net inflows for seven straight days—their first streak of that length in nine months—as Bitcoin stabilizes above $65,000 and briefly pushes beyond $66,000. Santiment: Seven-day inflow run adds nearly $1B Market intelligence firm Santiment reported that US spot Bitcoin ETFs have recorded seven consecutive days of net inflows since July 14. The products collectively brought in about $981 million as BTC moved back above $66,000, marking a clear reversal from the heavy outflows seen in May and June. Santiment said the last inflow streak of comparable duration occurred in early October 2025, when Bitcoin was nearing its $126,000 all-time high. The firm added that continued inflows could help propel BTC toward $70,000, while cautioning that an unusually large single-day inflow may reflect excessive FOMO and the formation of a local market top. On Wednesday, July 22, spot Bitcoin ETFs took in $69 million in net inflows. BlackRock's IBIT accounted for the largest share, with net inflows of 589 BTC valued at $38.78 million, according to Farside Investors. IBIT also posted roughly $900 million in trading volume during the session. Do ETF inflows signal the bear market is ending? Despite the pickup in institutional buying, market participants remain divided on whether the broader downtrend has fully reversed. Crypto asset manager Grayscale said Bitcoin's current bear market could continue until September or October under its four-year-cycle thesis. Grayscale noted that prior Bitcoin bear markets typically bottomed around one year after the peak, historically involving drawdowns as deep as 80%. Over the past year, BTC is down about 50% from its $125,000 all-time high. Grayscale also emphasized a macro-driven framework, arguing that Bitcoin has matured into an asset class increasingly tied to economic growth and interest-rate dynamics. The firm said a resilient US economy would be important for Bitcoin's performance, with attention turning to upcoming Federal Reserve rate decisions. Whales reduce long exposure during rebound Crypto analyst Justin Bennett said Bitcoin may be showing signs of distribution rather than accumulation. Pointing to on-chain indicators, he said whales have pared back long exposure relative to retail traders. Bennett added that the repositioning does not necessarily imply an imminent selloff, but he urged caution. While many traders are targeting a move toward $67,300 and $69,000, he said the current rally may lack sufficient fuel to sustain momentum. He flagged $66,240 as a key support level, arguing the uptrend remains intact on the 4-hour timeframe and above as long as BTC holds that line.

Crypto exchange-traded products continued to attract fresh money, with U.S. spot Bitcoin funds extending their inflow run to seven consecutive trading sessions as of July 23, 2026, while Bitcoin held near the $66,000 level. Research firm Santiment said Bitcoin-linked products have recorded positive net flows in every session since July 14, estimating total inflows of $981.2 million over the period. During the same stretch, Bitcoin traded as high as $66,300. The recovery in demand followed heavy ETF withdrawals in May and June, a phase that weighed on institutional participation. Market participants view sustained ETF inflows as a useful gauge of regulated, institution-facing demand. A multi-day streak is typically treated as more meaningful than a single strong day, as repeated subscriptions can signal steady allocation rather than a one-off portfolio rebalance. At the same time, the flow data does not reveal who the buyers are or how long they intend to hold, and daily figures can shift as funds finalize settlements and data providers adjust classifications. SoSoValue's spot ETF dashboard also showed positive daily demand, though totals can differ from Santiment's due to varying reporting windows and update schedules. Bitcoin's price action remained constructive but not decisive. CoinMarketCap placed BTC near $66,000 during the period, still below the $70,000 area Santiment flagged as the next key recovery test. CME Group data showed front-month Bitcoin futures around $66,105 on July 22, broadly in line with spot pricing, suggesting limited distortion between derivatives and cash markets and little evidence of an outsized futures premium tied to leveraged positioning. Flows alone do not confirm a cycle turn. Santiment cautioned that an unusually large one-day inflow can sometimes reflect overheated demand that precedes a local top rather than sustained gains. Issuer disclosures underscored the scale and concentration of U.S. spot ETF demand. BlackRock's iShares Bitcoin Trust reported $48.82 billion in net assets as of July 22, and the fund's official page listed a $37.67 closing price for July 21. The product is structured to provide Bitcoin exposure through an exchange-traded vehicle and is marketed as reducing custody and operational complexity versus direct ownership. Concentration among major issuers can support liquidity, but it can also amplify market impact if large funds shift from inflows to redemptions. U.S. spot Bitcoin exchange-traded products were approved by the Securities and Exchange Commission on Jan. 10, 2024, after then-Chair Gary Gensler said a federal appeals court ruling had influenced the agency's position. The approval broadened regulated access through brokerage accounts, without changing Bitcoin's inherent volatility and market risk. Grayscale, meanwhile, said the macro backdrop could mean Bitcoin has already put in a bottom, but it left room for a prolonged bear-market path under its cycle-based framework. In an analysis outlining two competing lenses, the asset manager said its four-year cycle model would allow for a bottoming window in September or October 2026, noting prior downturns often troughed about a year after market peaks and that historical average drawdowns were near 80%. Grayscale said it currently places more weight on a macroeconomic model than strict cycle timing, arguing that Bitcoin has become increasingly sensitive to economic growth, real interest rates, and broader financial conditions. Under that view, a bottom may already be in place if the U.S. economy remains resilient and the Federal Reserve avoids further rate hikes. For markets, the immediate signposts are Bitcoin's behavior around $70,000 and upcoming daily ETF flow reports. Continued inflows could reinforce the recovery attempt, while a return to net withdrawals would undermine the recent price structure.

The Louisiana State Employees' Retirement System (LASERS) has increased its holdings in Strategy (MSTR), seeking greater indirect exposure to Bitcoin through the company's corporate treasury model. Data cited by BTCtreasuries shows the fund now holds 21,300 Strategy shares worth about $2.13 million. LASERS manages roughly $16.3 billion in total assets, making the position a relatively small slice of its broader portfolio. The investment gives the pension fund added Bitcoin-linked exposure without buying or custodying the cryptocurrency directly. Strategy's share price has remained closely tied to the firm's expanding Bitcoin reserves as it continues to acquire coins. Strategy, led by Executive Chairman Michael Saylor, has built its approach around accumulating Bitcoin, frequently raising capital through equity issuance and debt financing to fund additional purchases. The company is widely regarded as the largest corporate holder of Bitcoin. LASERS had established the position before the latest purchase and opted to add shares rather than scale back during market volatility, signaling continued confidence in Strategy's long-term strategy. Institutional demand for indirect access remains strong as many large investors remain wary of direct crypto ownership due to volatility and custody requirements. Buying shares of a regulated public company offers exposure within traditional equity markets, avoiding private key management and specialized custody arrangements. Public-company disclosure standards and regulatory oversight also tend to align better with institutional investment policies. While modest in size, the increased stake reflects a broader trend: pension funds and other asset managers are increasingly pursuing Bitcoin exposure through exchange-traded products and public companies with significant Bitcoin holdings. Strategy has remained a prominent option because its corporate strategy is directly tied to Bitcoin accumulation, making the stock a commonly used proxy for Bitcoin participation without direct custody responsibilities.

Tesla reported a $112 million after-tax mark-to-market loss on its Bitcoin holdings for the second quarter, reflecting sharp swings in crypto prices, according to its shareholder update. The company said it made no Bitcoin purchases or sales in the three months ended June 30, leaving its position unchanged at 11,509 BTC. Blockchain tracker Arkham Intelligence likewise shows 11,509 BTC in wallets linked to Tesla. Bitcoin volatility drove the quarterly hit. BTC traded around $83,000 at the start of the period, fell to roughly $58,000 in late June, and later rebounded to about $65,840 by the time Tesla released results. Under Tesla's current accounting approach, digital assets are measured at fair value at each reporting date, so the recovery after quarter-end did not offset the Q2 loss. Accounting change In 2024, Tesla adopted the Financial Accounting Standards Board's updated crypto accounting standard. Under the new rules, eligible crypto assets are carried at current market prices, and mark-to-market gains or losses flow through earnings each quarter. As a result, the $112 million figure is an after-tax fair-value loss rather than an impairment charge under the prior model, which required companies to record declines but generally prevented recognition of recoveries unless the asset was sold. Value of the position and background Using the roughly $65,840 price at the time of release, Tesla's 11,509 BTC would be worth about $758 million, though the accounting value depends on the precise quarter-end price. Tesla's Bitcoin exposure dates to February 2021, when it disclosed a $1.5 billion purchase to diversify cash holdings. The company briefly accepted BTC payments in the U.S. before pausing the option in May 2021, citing energy-use concerns. In Q2 2022, Tesla sold about 75% of its holdings, converting roughly $936 million of Bitcoin into cash, pointing to COVID-related uncertainty in China and a desire to strengthen liquidity rather than a change in its view on Bitcoin. Since then, the remaining coins have stayed on the balance sheet through major cycles, including Bitcoin's slide below $16,000 in late 2022 and the latest swing down toward $58,000. Broader financial context Tesla characterized the $112 million digital-asset loss as a non-cash, volatility-driven item, not a cash outflow associated with selling Bitcoin. For Q2, Tesla reported revenue of $28.2 billion (above the roughly $26.4 billion Street estimate and up from $22.5 billion a year earlier), adjusted EPS of $0.33 (missing estimates), and net income of about $1.11 billion (versus $1.17 billion a year earlier). Vehicle deliveries totaled 480,126, roughly 25% higher year over year. Profitability pressures persisted. Automotive gross margin excluding regulatory credits was 16.3% versus about 15% a year earlier, but below the 19.2% posted in Q1 2026. Free cash flow was negative $1.1 billion as Tesla continued heavy spending on AI infrastructure, manufacturing, robotaxi development, and its Optimus humanoid program. The company ended the quarter with around $43.5 billion in cash and investments. What to watch With the Bitcoin position unchanged, Tesla remains exposed to price moves at future quarter-ends. Under mark-to-market accounting, earnings volatility tied to the crypto line is likely to persist unless Tesla alters its holdings or sells coins.