Week in review: Bitcoin tops $62,500 as MiCA transition ends in the EU

Bitcoin tops $62,500 as MiCA transition ends; Russia sets crypto law start date.

Digital gold rebounded from a local low, the MiCA transition period in the EU expired, Russia set a launch date for crypto regulation, and other highlights of the week.

Bitcoin recovers late-June losses

After its worst month in four years, the first cryptocurrency on July 1 bounced from an almost two-year low around $57,700 and rose above $60,000.

The upward move began after statements by the Fed Kevin Warsh about persistently high inflation in the U.S.

Bitcoin kept recovering even amid a sell-off in chipmakers’ stocks. On Saturday, July 4, the price reached $63,300 (on Binance) before pulling back to around $62,700.

For the week, Bitcoin gained 4.6%. Several top-10 assets by market capitalization outpaced the flagship. Solana rose 12.7%, Ethereum 11.7%, and the Hyperliquid token climbed more than 10%.

Outflows from spot bitcoin ETFs continued for an eighth straight week, totaling $526.6 million. During the July 2 session alone, the products attracted $221.7 million.

Ethereum-based funds showed a similar trend, with $13.7 million withdrawn for the week.

The crypto fear and greed index remains in extreme fear. Over the week it rose from 18 to 23, staying within the lower range.

Total market capitalization recovered from $2.07 trillion to $2.17 trillion. Bitcoin’s dominance kept edging lower, to 57.9% from 58.1%. Ethereum’s share jumped from 9.2% to 9.8%.

MiCA transition period expires in the EU

On July 1, 2026, the transition period for crypto platforms under the MiCA regulation expired in the EU. Companies that did not obtain a license must stop serving European clients, the European Securities and Markets Authority (ESMA) said.

The transition allowed firms operating under national rules before December 30, 2024 to continue until July 1, 2026 or until approval or rejection of a license. After that date, operating without authorization is a violation of EU law.

According to ESMA’s register, by the end of the transition period there were 244 authorized crypto service providers in the EU and EEA. In the final days, several companies in Italy, France, Malta and Spain received licenses. DefiLlama data shows that approved venues with notable spot liquidity include Kraken, Coinbase and Bitstamp.

The European Commission has already started reviewing the regulation. In May, the Commission launched a public consultation (for individuals) and a targeted consultation (on more technical and legal issues) to assess whether MiCA remains fit for purpose given market developments and international regulation.

What to discuss with friends?

• Russia’s Ministry of Digital Development will become the single AI regulator.
• Strategy’s valuation fell below the value of its bitcoin reserves for the first time.
• Meta unveiled an AI system to decode brain activity.
• Google warned the EU about privacy risks from new search requirements.

Ethereum ecosystem launches organization for institutional engagement

An independent nonprofit, Ethereum Institutional, launched in the Ethereum ecosystem to promote the network among banks, asset managers and other financial institutions.

The organization will work with Ethereum, L2 networks and ecosystem projects. Its goal is to serve as an independent entry point for institutions evaluating the second-largest cryptocurrency for tokenization, stablecoins and other on-chain infrastructure.

The operating team includes David Walsh, Marius Smith and Matthew Dowson. The board of directors comprises Tom Lee, Joseph Chalom and Walsh.

Anchor sponsors of Ethereum Institutional are BitMine Immersion Technologies, Sharplink, Inc., and ConsenSys CEO Joseph Lubin. Funding amounts were not disclosed.

Bank of Russia sets start date for crypto regulation

A law regulating the crypto market in Russia could take effect on September 1, said First Deputy Governor of the Bank of Russia Vladimir Chistyukhin at the Bank of Russia Financial Congress.

After that, market participants will have time to prepare: companies will need to compile documents to be included in the register, obtain new licenses and overhaul internal processes.

The transition period is expected to run until July 1, 2027. From that date, administrative and criminal liability for illegal cryptocurrency operations should take effect, Chistyukhin noted.

He added that if the law and by-laws are adopted on schedule, market participants will be able to begin obtaining licenses and reorganizing processes.

The deputy central bank governor expects the first operations under the new regime by the end of this year or the beginning of next year.

Earlier, it was assumed that the main framework for the draft law “On Digital Currency and Digital Rights” would be prepared by July 1.

Also on ForkLog:

• Buterin outlined the main priorities of Ethereum’s new roadmap.
• China’s 360 introduced a “response” to Anthropic Mythos.
• Loopring announced it will shut down its DEX.
• JPMorgan criticized Strategy’s decision to sell bitcoin.

StarkWare unveils roadmap to protect StarkNet from quantum threats

StarkWare, the company behind StarkNet, presented a roadmap to migrate the L2 network to post-quantum cryptography. The plan provides for replacing remaining dependencies on elliptic curves and for migration tools for existing contracts.

StarkWare called the months-long roadmap the “strongest” in crypto. Developers highlighted StarkNet’s architectural advantage: the network uses STARK proofs built on hash functions. Such proofs are considered inherently quantum-resistant.

The plan consists of three stages. First, replace remaining cryptographic components tied to elliptic curves, then introduce post-quantum digital signatures and tools for automatic migration of existing smart contracts.

The final stage will depend on when Ethereum moves to post-quantum cryptography.

What else to read?

We explained how AI tokens went from “free fuel” for business to a major unforeseen expense, and why corporations overlooked it.

We looked at the boom in tokenized stocks that led to capital outflows from the crypto industry.

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