Trading Desk Insights
Bitcoin is showing relative strength as the broader crypto market trades lower ahead of today’s FOMC rate decision and a key slate of macro data due later this week. Annualized BTC funding rates remain elevated near 10%, well above most altcoins, indicating persistent long positioning and bullish sentiment. That said, BTC continues to hover dangerously near its 20-day moving average, a level that has consistently provided support in recent months and remains critical to hold.
On the regulatory front, a Trump-appointed working group out of the White House released a landmark report urging federal agencies to streamline digital asset regulations and accelerate the rollout of crypto-linked financial products. However, the report lacked any specifics on the much-anticipated strategic Bitcoin reserve.
Meanwhile, the SEC's Tuesday approval of in-kind creation and redemption mechanisms for spot Bitcoin and Ether ETFs marks a major step forward. This move brings these products in line with traditional ETFs, paving the way for improved market efficiency and more seamless trading activity.
All eyes are on the Fed today. Fed funds futures are pricing in a 98% probability that rates will be held steady at 4.25%–4.5%, but Powell’s commentary will be the real market catalyst, especially if he provides fresh clues on the forward path of monetary policy.
Equity markets are coming off a weak session, with the S&P 500 breaking its six-day streak of all-time highs. U.S.-China trade tensions resurfaced after American negotiators walked away from talks, casting doubt on the extension of tariff relief and weighing on risk sentiment.
The News Room
Strategy buys nearly $2.5 B worth of Bitcoin to make up 62% of total BTC in treasuries
Strategy (formerly MicroStrategy) has deployed the proceeds from its latest $2.5 billion IPO—specifically the “Stretch” variable‑rate preferred shares—to purchase roughly $2.5 billion worth of Bitcoin, raising BTC to account for approximately 62% of its total treasury holdings. This marks the fourth such equity offering this year, reinforcing the company’s commitment to deepening its identity as a Bitcoin Treasury entity.
Senator Lummis introduces legislation to make Fannie and Freddie count crypto in mortgage risk checks
On July 29, Senator Cynthia Lummis (R‑WY) unveiled the “21st Century Mortgage Act,” proposing that Fannie Mae and Freddie Mac formally include digital assets—such as Bitcoin and other crypto holdings—in mortgage underwriting assessments without forcing borrowers to liquidate into fiat. The bill aims to modernize lending practices for younger homeowners, noting that just over one‐third of Americans under 35 own homes and approximately 21% of U.S. adults hold crypto. The legislation codifies a shift already initiated via FHFA guidance.
Twenty One Capital rises to 3rd largest Bitcoin holder following 5,800 BTC boost from Tether
As part of its SPAC merger with Cantor Equity Partners, Twenty One Capital will receive an additional 5,800 BTC from Tether—driving its total holdings to more than 43,500 BTC (about $5.1 billion), making it the third‑largest corporate Bitcoin treasury globally. The firm plans to debut on July 29 under ticker XXI and will feature a “Bitcoin Per Share” (BPS) metric, giving investors transparent, on‑chain exposure directly tied to Bitcoin rather than relying on traditional fiat valuation models.
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This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
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