An analyst from one of the largest asset managers in crypto is outlining the key drivers behind Bitcoin’s (BTC) historic bull run.

Matthew Sigel, the head of digital assets research at VanEck, says on the social media platform X that BTC is now up 30% year-to-date, outpacing gold (+27%), the MSCI ACWI (+11%) and the S&P 500 (+7%).

“This rally reflects deepening institutional engagement, favorable macro conditions, and emerging policy clarity.”

Sigel notes that corporate treasuries are driving net demand, having bought more than 300,000 BTC this year, more than double the amount absorbed by spot Bitcoin exchange-traded funds (ETFs).

“MicroStrategy and MetaPlanet remain the largest accumulators, but a surge in shells, reverse mergers, and SPACs (special purpose acquisition companies), often backed by global investment banks, has fueled fresh capital formation in the sector. This dynamic marks a shift. Bitcoin is moving from speculative trading desks to strategic balance sheets.”

The digital assets researcher also notes that Bitcoin volatility dropped to around 23% in early July, one of the lowest levels in a decade.

“Lower volatility is making Bitcoin easier to size within institutional portfolios, particularly for allocators focused on Sharpe ratios and downside risk.”

Sigel says spot Bitcoin ETFs have picked up and brought in $3.7 billion in net inflows so far this month, with year-to-date inflows hovering around $16 billion.

“Participation is growing across retail, RIAs (registered investment advisors) and wirehouse platforms such as Morgan Stanley and Merrill Lynch, reflecting broader institutional acceptance.”

The researcher also points to “policy tailwinds” in Washington, DC.

“Crypto Week began July 15th, with three key bills under review: the GENIUS Act (stablecoins), the CLARITY Act (market structure), and the Anti-CBDC Act. Polymarket odds place an 89% probability on passage of the GENIUS Act this year, signaling bipartisan appetite to legitimize fiat-backed stablecoins and potentially unlock a wave of new issuance and payment infrastructure.”

Sigel says the potential for two interest rate cuts from the U.S. Federal Reserve later this year could support flows into Bitcoin and gold.

He also notes miners continue to remain net holders following the April 2024 BTC halving, with their balances recently reaching a 12-month high.

“Only approximately 5.2% of Bitcoin supply has moved in the last 30 days, according to IntoTheBlock, indicating strong holder conviction and reduced available float.”

BTC is trading at $116,524 at time of writing and is down more than 3% in the past 24 hours.

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Bitcoin

traded at $107,937 as of 22:22 UTC on Sunday, up 0.54% over the past 24 hours, as attention turned to fiscal policy tensions in Washington following President Trump’s latest post on Truth Social.

Price action remained volatile, with BTC fluctuating between $107,194 and $108,489 during the 24-hour window, according to CoinDesk Research’s technical analysis model.

On June 29, 2025, President Donald Trump posted a pointed message on Truth Social addressing Republican lawmakers amid intense debate over his sweeping tax-and-spending package. “For all cost cutting Republicans, of which I am one, REMEMBER, you still have to get reelected. Don’t go too crazy! We will make it all up, times 10, with GROWTH, more than ever before,” he wrote. This statement underscores the deep divisions within the GOP as it wrestles with the ambitious legislation dubbed the “One Big Beautiful Bill.”

The bill, exceeding 900 pages, combines roughly $3.8 trillion in tax cuts with targeted spending reductions and increased funding for defense and border security. It seeks to make permanent many of the tax breaks from Trump’s 2017 Tax Cuts and Jobs Act, including eliminating taxes on tips, overtime pay, and certain auto loans. The child tax credit would rise to $2,200 under the Senate version, while deductions for seniors would increase temporarily. However, to offset these tax cuts, Republicans propose significant cuts to Medicaid and nutrition programs, sparking fierce debate within the party.

Moderate Republicans from high-tax states are pushing for a higher cap on state and local tax deductions (SALT), while conservatives demand deeper spending cuts, particularly targeting Medicaid. These internal disagreements complicate efforts to secure the narrow Republican majorities needed in both chambers to pass the bill, which Democrats uniformly oppose as favoring the wealthy and worsening inequality.

Trump’s social media message reflects an attempt to balance these competing pressures — urging fiscal restraint to satisfy conservatives while emphasizing that robust economic growth will compensate for revenue losses and help reduce deficits over time. This supply-side economic approach projects that growth will “make it all up” despite near-term increases in the national debt, which nonpartisan analysts estimate could add trillions to the existing $36.2 trillion debt.

Crypto analyst Will Clemente’s reaction on X (formerly Twitter) shortly after Trump’s post captures a common market sentiment: “How can you read this and hold long term US treasuries at current yields lol… Also, how can you read this and not hold any Bitcoin or gold.” Clemente’s skepticism toward long-term U.S. Treasuries reflects concerns that the bill’s deficit-financed tax cuts and modest spending cuts signal a loose fiscal policy that could fuel inflation and currency debasement.

In this context, traditional fixed-income assets like Treasuries may appear less attractive, as rising deficits and potential monetary accommodation threaten bond values. Conversely, hard assets such as gold and Bitcoin are increasingly viewed as stores of value and hedges against inflation and fiscal risk. The expectation of sustained deficits and political challenges to fiscal discipline bolster demand for these inflation-resistant assets.

With the Senate racing to finalize the bill before the July 4 holiday, Trump’s call for unity and moderation highlights the high stakes and political challenges in passing one of the most consequential fiscal packages in recent U.S. history. The bill’s fate remains uncertain as lawmakers negotiate to balance tax relief, spending cuts, and political feasibility.

Technical Analysis Highlights

• From June 28 15:00 to June 29 14:00 UTC, BTC traded from $107,194 to $108,489, a 1.21% intraday range.
• Support was established at $107,300, with multiple rebounds during the 02:00–03:00 window.
• Volume peaked at 7,538 BTC between 08:00 and 11:00 UTC on June 29, confirming upward momentum.
• During the final session hour (13:05–14:04 UTC), BTC fell from $108,219 to $108,059, forming a descending channel.
• A 130 BTC volume spike at 13:35 coincided with a sharp dip to $108,030, which was tested and held.
• Final intraday rally pushed price back toward $108K before fading slightly by 22:22 UTC to $107,937.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.

The price of Ethereum has fallen on tough times during the second quarter of 2025, dipping to a low of $1,415 before somewhat recovering to linger around the $1,500 level. Crypto analysts are now offering their thoughts on what is driving the largest altcoin’s recent woes.

Related Reading

Bankless Cofounder Points To Community Attitude Problems

David Hoffman, a co-founder of Bankless, has turned to social media site X to opine about Ethereum’s price issues. In Hoffman’s view, the actual problem isn’t what most mainstream critics have their attention on – rather, he thinks that Ethereum’s leadership and community culture are driving users away.

Hoffman pointed to two particular instances of this issue: public shaming of ETH staking platform Lido Finance and the brutal treatment of some traders who were referred to as “degenerate.” He asserts these actions demonstrate a trend of alienating users and builders on the network.

‘Stop Policing Behavior,’ Hoffman Says

The cryptocurrency executive contends that Ethereum’s effort to manage user activity on what is supposed to be a permissionless blockchain has emerged as a central reason for its price drop.

Everyone is midcurving why ETH’s price performance has sucked

Ethereum leadership and culture have alienated users and builders by being hostile to its own app layer.

We publicly exorcised @LidoFinance. We’ve shunned traders and degens.

On a permissionless chain, we’ve tried…

— David Hoffman (@TrustlessState) April 12, 2025

“If we want ETH to grow, the EF and larger community need to begin bringing in users and builders, not driving them away with a holier-than-thou culture,” Hoffman wrote in his post.

According to reports, the Lido Finance platform has in the past received strong criticism from the Ethereum community regarding regulatory issues, centralization, and security concerns. On the other hand, some traders were accused of creating high gas prices and failing to back long-term projects.

Ethereum Price Indicates Signs Of Recovery Amid Contrasting Predictions

In spite of all this, Ethereum’s price has demonstrated a little life in the form of a 6% jump within a 24-hour time frame. This arrives at a vital juncture, as ETH had reportedly reached a five-year low based on Bitcoin.

There are some believers among the community. Leo Glisic is one of them who hopes for positive upside on Ethereum given its position as “infrastructure for the future global financial system.”

In the opinion of Glisic, “Ethereum will be the settlement and interoperability layer, which is a winner-take-all market.”

Related Reading

Doubters Draw Nokia Parallel As Competition Tightens

Not everybody is so optimistic. One critic, CryptoCurb, has compared Ethereum with Nokia’s own historic collapse in the mobile phone market.

CryptoCurb speculates that Solana might supplant Ethereum much as Apple did Nokia, with a potential becoming the largest altcoin in the process.

Other skeptics, including Peter Schiff, have questioned whether the recent price rally can last. Some have even suggested Ethereum’s price could drop below the $1,000 threshold.

While Ethereum continues to traverse these choppy seas, the debate surrounding its community culture and leadership approach seems to be gaining traction.

With prices remaining well short of highs past, how the Ethereum Foundation deals with these criticisms may have an important role to play in the direction of the network.

Featured image from Pexels, chart from TradingView

US President Donald Trump’s new reciprocal tariffs on 180 countries have reignited global trade tensions, which has led to fresh interest in Bitcoin (BTC) as a strategic financial asset, according to VanEck’s head of digital assets, Matthew Sigel.

Following the April 2 announcement, Bitcoin dipped to the $81,000 range amid broader risk-off sentiment. However, the flagship crypto stabilized and outperformed equities in the days that followed.

Sigel attributed the resilience to Bitcoin’s growing appeal as a neutral asset in times of economic uncertainty. He wrote in an April 4 client note:

“While slower growth alone isn’t bullish for Bitcoin, the potential policy response is: if tariffs drag on GDP without sparking a new inflation wave, the Fed may have scope to cut rates.”

He added that this would reintroduce the liquidity conditions under which “Bitcoin has historically excelled.” He also pointed to the growing appeal of neutral financial infrastructure as traditional systems become increasingly politicized or “weaponized.”

Nations adopting Bitcoin

Sigel pointed to recent developments that demonstrate how Bitcoin’s role in global trade continues to evolve, with several nations turning to digital assets for cross-border settlement.

Intelligence reports revealed that China and Russia have begun settling select energy transactions in Bitcoin and other digital assets, marking a significant departure from traditional dollar-based systems.

Bolivia, facing constraints on foreign reserves and payment networks, announced in March a plan to import energy using digital assets as payment rails.

In Europe, French state-backed utility EDF is exploring Bitcoin mining as a use case for excess electricity it currently exports to Germany at a loss. EDF reportedly views domestic mining as a way to monetize surplus supply in a volatile energy pricing environment.

According to Sigel:

“These aren’t theoretical use cases anymore. We’re seeing monetary realignment in real-time.”

He argued that the tariffs may act as a catalyst for this transition by forcing nations to reassess their reliance on US-dominated financial systems.

He wrote:

“In that context, the latest tariffs aren’t just an economic story, they may be an accelerant for Bitcoin’s role in the emerging multipolar order.”

Fed, Dollar Index, and ETF flows

Sigel advised investors to track Federal Reserve policy closely, as dovish shifts in rate expectations and rising liquidity historically boost Bitcoin.

He also pointed to the US Dollar Index (DXY) as a critical indicator, suggesting that any dollar weakness could reinforce Bitcoin’s status as a hedge.

Despite recent market volatility, US-listed spot Bitcoin ETFs remain net positive by approximately $600 million this year, supported by inflows in late March.

Sigel noted that continued demand for ETF products and on-chain activity reflects growing institutional interest.

Mentioned in this article

Over the past few years, NFTs have evolved from a small niche into a recognized technology across art, collectibles, and various industries. As interest grows, challenges related to cost and scalability have become more evident, especially for those looking to launch large NFT collections. In response, developers on the Solana blockchain introduced compressed NFTs (cNFTs)—an approach that stores and verifies NFTs in a more resource-efficient way.

We look at what cNFTs are, how they differ from traditional NFTs, and why they may appeal to newcomers and experienced users on Solana.

The Rise of NFTs on Solana

Early NFT Landscape

When Solana first emerged as a platform for NFTs, most collections were relatively small and pricey to mint. Developers championed profile picture (PFP) projects, and early adopters embraced their exclusivity. The idea was to keep supply limited, thus driving up perceived value. However, minting large numbers of NFTs at scale could quickly become costly.

Shift Toward Accessibility

Many artists and community builders found that high fees limited their ability to experiment with large collections or give away free NFTs to fans. Solana’s developers responded by introducing compressed NFTs, which use an innovative approach to store data more efficiently.

This shift toward reduced on-chain storage enables creators to mint hundreds of thousands—or even millions—of NFTs at a fraction of the old cost, making the technology accessible to more people.

What Are Compressed NFTs (cNFTs)?

Core Definition

Compressed NFTs, often called cNFTs, use state compression technology to reduce the amount of on-chain data required for ownership and metadata. Instead of each token occupying substantial space on the blockchain, cNFTs maintain a lean record of ownership, with other details stored off-chain.

How cNFTs Differ from Traditional NFTs

• Traditional NFTs: Typically store images and metadata either fully on-chain or in external links (like IPFS). This can become expensive at scale because every entry requires blockchain space.

• cNFTs: Maintain the essential ownership records on-chain but compress and offload the heavier metadata elsewhere. This hybrid design lowers costs while providing a verifiable link to the token.

Key Features

cNFTs slash the costs of minting large NFT collections by storing less data on-chain, allowing creators to launch thousands or even millions of tokens without breaking the bank. This efficiency also helps tackle scalability, making cNFTs an excellent fit for gaming, social media, and metaverse projects that need high-volume assets.

They achieve this balance by keeping essential ownership details on-chain while offloading heavier files elsewhere, preserving authenticity without bogging down the network. Because fewer transactions hit the blockchain, cNFTs lower energy usage, offering a more sustainable path for creators and collectors alike.

How cNFTs Work on the Solana Blockchain

State Compression in Action

Solana’s state compression is the secret sauce behind cNFTs. Instead of writing every bit of data for each token onto the blockchain, the protocol organizes the information using Merkle trees. A compressed record of ownership goes on-chain, while large files (like images or animations) stay off-chain.

In compressed NFTs, the detailed account information isn’t held directly on-chain. Instead, it’s kept in off-chain data stores managed by RPC providers.

By verifying each token’s existence through cryptographic proofs, the system ensures everyone can trust the data without needing to store every detail on the blockchain.

cNFTs have gained traction partly thanks to an expanding toolset. Well-known Solana wallets—Phantom, Solflare, and Backpack—support cNFTs, allowing users to buy, sell, and manage them with minimal friction.

Why cNFTs Matter

Affordability Spurs Innovation

When minting fees are high, creators may hesitate to experiment. Compressed NFTs drop these costs significantly, allowing for artistic or experimental projects without worry of financial loss.

For instance, platforms like DRiP can distribute free or low-cost NFTs to engage communities. As a result, more users—artists, fans, and developers—enter the ecosystem, driving new ideas and larger audiences.

Dynamic and Interactive Experiences

Lower fees don’t just make NFTs cheaper; they also spur interactive use cases. Blockchain game devs can create dynamic items that evolve with gameplay, knowing they can handle massive numbers of tokens. Examples include Dialect, which incorporates cNFTs for collectible in-platform stickers and adds gamified engagement.

Community Building and Attention

NFTs are social as much as they are collectible. By distributing tokens widely and at minimal cost, communities can grow faster. DRiP, for example, uses cNFTs to broaden membership and encourage fan participation. This mix of easy entry and creative engagement can capture attention inside and outside the core NFT community.

Key Marketplaces Supporting cNFTs

Tensor

Tensor is a major NFT marketplace embracing cNFTs, offering both traditional listings and an NFT Automated Market Maker (AMM). This setup functions similarly to Sudoswap on Ethereum, letting users place bids and trade in a liquidity pool.

Magic Eden

When Magic Eden launched in September 2021, it quickly became a key destination for anyone interested in NFTs on Solana. It supports traditional Solana and compressed NFTs (cNFTs), allowing creators to release larger collections without running into high fees. With accessible tools and minimal costs, newcomers can easily list projects, and collectors can explore a steady stream of new drops.

Source Tensorians

cNFT Collections

Tensorians

Among the most prominent cNFT collections is Tensorians, introduced by Tensor. This 10,000-piece collection used airdropped “Tensorian Shards” to let people mint the official tokens. Despite being a compressed NFT release, Tensorians has a market cap of 39,640 SOL—equivalent to about $6.3 million.

Tensorians combined large-scale minting with scarcity and exclusivity, demonstrating that mass minting doesn’t automatically destroy an NFT’s potential for long-term value, as long as a community is actively engaged.

Many creators are drawn to cNFTs to experiment with new formats and themes. Whether big gaming projects or niche artistic endeavors, the market for compressed NFTs continues to grow. Potential collectors might find fresh opportunities in marketplaces like Tensor and Magic Eden, where experimental cNFT projects are regularly launched.

The Other Side of cNFTs

Spam and Hacks

Lower minting costs benefit legitimate creators, but they also attract scammers. Some individuals mint and send cheap, suspicious NFTs to random addresses, hoping recipients click on harmful links. Even if the success rate is low, the near-zero overhead of creating and distributing these spam tokens makes such scams appealing to bad actors.

Staying safe means verifying any unexpected NFT drop or link. Users should be cautious about who they trust or which tokens they interact with, especially when they arrive unannounced.

Over-commoditization of NFTs

While cNFTs excel at opening doors to large collections, the ease of minting can flood the market. This can dilute scarcity, a key factor that originally made NFTs attractive as unique digital assets. If everyone can mint unlimited tokens, then the value proposition for specific collections might suffer.

Future Outlook and Potential

Widening Adoption

As minting costs stay low, it’s likely that more developers, brands, and artists will experiment with cNFTs. With smaller financial barriers, creators can explore fresh ideas with reduced risk, and communities can participate more freely.

Evolving Technologies

State compression is just the start. Ongoing research may refine these strategies, making minting even more efficient or adding features like partial on-chain updates. Other blockchains might also adopt similar approaches as they grapple with the same cost and scalability hurdles.

NTT DATA, a global digital business and IT services leader, has today launched a new global research report uncovering the use of generative AI (GenAI) in the banking sector worldwide. The report, titled “Intelligent banking in the Age of AI”, has found that despite the growing adoption of GenAI technology in the banking industry, banks and financial institutions are split when it comes to outcome-based strategies – only half of banks (50%) see it as a tool for improving productivity and efficiency. Similarly, half (49%) believe it can be used for reducing operational IT spend. 

Transforming Banking Through GenAI 

GenAI is more disruptive than any previous advance in banking technology. It is less a question of if, but when banks embrace this technology, due to its transformative ability to embed intelligence at every layer of the banking ecosystem, from core banking to front-end systems. GenAI already making waves in the banking industry, with 6 in 10 organizations (58%) already fully embracing its transformative potential, an increase from 2023, when only 45% of organizations had fully embraced GenAI, according to NTT DATA’s research. 

“Generative AI represents a pivotal moment for the banking industry,” said Robb Rasmussen, Head of Global Marketing & Communications, NTT DATA. “While the potential benefits are enormous, the challenges of implementing GenAI are complex and varied, requiring careful navigation and a structured approach. Given the anticipated high spending on GenAI, achieving a return on investment is crucial. Many banks will be expecting GenAI to drive long-term savings by automating IT tasks, improving operational efficiency, and creating competitive advantages, but it’s important to note that achieving meaningful ROI requires a clear strategy, tailored implementation, and robust governance at the same time.” 

Financial constraints increasing pressure on ROI 

ROI has become a top priority for GenAI implementations, yet banking organizations are split in their opinions of which strategies are most important to them. Banks have long struggled with boosting productivity, and GenAI is poised to present a solution to this problem, but only half of banking leaders (50%) see it as a solution to current productivity woes. Cost optimization is another area where banks are split, with just under half (49%) are looking to reduce IT budgets accordingly. 

 This disparity is highlighted on a global scale too – for example, almost 6 in 10 US banks (59%) are keen to reduce IT budgets and almost half (47%) want to cut operations budgets, while only 4 in 10 banks in Europe (43%) have IT budgets front of mind and just over a third (36%) are concerned with operations costs. Meanwhile productivity is the most important factor for European banks (46%), yet the US and APAC are placing even more emphasis on productivity themselves in comparison.  

Key performance indicators (KPIs) that financial institutions are using or planning to use to evaluate the success of its Generative AI initiatives: 

Differing strategies across differing regions 

Strategies for realizing these benefits of GenAI differ vastly among organizations too. While around half of organizations are focusing on collaboration between humans and AI (51%) or a hybrid approach with existing systems (47%), over a quarter (28%) of banks are hoping to fully automate tasks and remove the need for manual input entirely. Fully automating tasks is an area which divides opinions worldwide as well, with a quarter of banks in the UK (25%) and Europe (24%) looking to fully automate the process, while almost a third of banks (32%) in the Americas and 35% of Japanese banks are looking to do the same. 

Robb Rasmussen, Head of Global Marketing & Communications, NTT DATA added: “It is clear that the ability to balance innovation with fiscal responsibility will define success for banks. However, many banks are lacking in maturity when it comes to this technology and are unsure where to start. Partnering with systems integrators can be a good starting point, allowing them to access the latest knowledge while ensuring compliance with industry regulations. By working with specialized providers, banks can ensure that GenAI implementations can deliver the desired ROI, while maintaining robust data protection measures and meeting both internal security standards and regulatory requirements.” 

NTT DATA’s research dives into specific areas of the banking industry, including Payments and Wealth Management, as well as Fraud Prevention. To read the full report, please go to “Intelligent banking in the Age of AI”