Daily Digest July 1: Bitcoin ETFs Bleed a Record $4.5B as BTC Claws Back Above $60K

It was a red morning that turned into a green afternoon — the kind of day that leaves everyone a little dizzy. Bitcoin opened July at $57,950, its lowest print in 652 days, after closing out June down roughly 20% — its worst month since June 2022. Then Fed Chair Kevin Warsh took the stage at the ECB forum, talked about easing inflation risks, and the whole market exhaled. BTC ripped back above $60,000 by the afternoon. The vibe: battered, bruised, but not dead. Fear & Greed is sitting deep in Extreme Fear territory, which historically is when the interesting things start happening.

📊 Price Snapshot

• BTC: ~$60,300 (+3.1%) — after touching $57,950, a 652-day low, earlier in the day

• ETH: ~$1,620 (+3.1%)

• SOL: ~$77.70 (+6.2%)

• Top gainer of the day: Stargate Finance (STG) +58.5%

• Top loser of the day: Helium (HNT) −16.6%

• Total market cap: ~$2.15 trillion (+1.9% in 24h)

• Fear & Greed Index: 11 — Extreme Fear (down from 15 yesterday)

Bitcoin ETFs Just Had Their Worst Month Ever — $4.5 Billion Walked Out the Door

U.S. spot Bitcoin ETFs shed $4.5 billion in June, per SoSoValue data — the worst month since they launched in January 2024, beating the previous record ($3.48 billion in February 2025) by 29%. BlackRock's IBIT alone accounted for $3.55 billion of it, including $212 million on June 30 — its ninth consecutive day of net outflows. Total ETF assets have slumped from roughly $83 billion to about $71 billion in a single month.

Two culprits stand out. The SpaceX IPO on June 12 vacuumed up risk capital at a historic scale — the offering raised $75 billion total and broke retail single-session buying records. Five days later, Kevin Warsh's first Fed meeting as chair flipped the dot plot toward hikes and took rate cuts off the table. The institutions that were the marginal Bitcoin buyer of 2024-25 became the marginal seller. That's the whole story of this drawdown in one sentence — and it's why today's softer Warsh commentary moved the market so hard.

MiCA D-Day: Over 80% of EU Crypto Firms Are Now Operating Without a License

The EU's MiCA transitional period expired today, and the numbers are rough: of the 1,200+ crypto firms that held pre-MiCA national registrations, only around 210 have converted to full CASP authorization. As of July 1, anyone providing crypto-asset services in the EU without a MiCA license is in breach of EU law and must cease operations immediately.

Expect a wave of consolidation, sudden service shutdowns for EU customers, and licensed players like the big exchanges eating market share from the hundreds of smaller firms that didn't make the cut. If you're in Europe and your platform hasn't confirmed its CASP status, that's worth checking tonight, not next week.

The Quiet Bull Story: Nasdaq Taps Pyth, DTCC Embraces Stellar

While prices bled, Wall Street's plumbing kept moving on-chain. Nasdaq selected Pyth Network to distribute its market data, putting TotalView order-book data on-chain for the first time — PYTH jumped over 6%. Meanwhile, DTCC — the firm that settles basically all U.S. securities — announced plans to integrate Stellar into its tokenization system with XLM as a settlement asset, sending XLM up more than 12%.

Days like this are a reminder that institutional adoption doesn't check the Fear & Greed Index before signing deals. The infrastructure bets keep getting bigger even while the ETF money runs for the exits.

🔭 What's Coming Up

• June jobs report (NFP) — Thursday, July 2 at 8:30 a.m. ET. The biggest macro event of the week. A hot number fuels the Warsh rate-hike narrative; a cool one could extend today's bounce.

• Holiday liquidity warning — U.S. markets closed Friday, July 3 for Independence Day; bond market closes early Thursday. Crypto trades through it all on thin books, so expect exaggerated moves.

• FOMC minutes and CPI both land within the next two weeks — the one-two punch that decides whether a July or September hike is really on the table.

• Ethereum's Glamsterdam upgrade hits public testnet in July/August — ePBS (EIP-7732) and Block-Level Access Lists (EIP-7928), with mainnet eyed for Q3.

• Solana's Alpenglow upgrade is live for testing and could ship as early as Q3 — cutting finality from ~12.8 seconds to ~150 milliseconds.

• July token unlocks: ~$376 million across 145 projects, led by PUMP's ~$116.7 million unlock — the biggest supply event of the month.

• Airdrops: PUMPDROP and Pengu Clash are the active ones to farm now; Polymarket, Backpack, MetaMask, and Base remain the big speculative point-farming plays.

• Polygon zkEVM Mainnet Beta shut down today — unmigrated assets auto-migrate to Ethereum mainnet and can be claimed through a dedicated interface.

• Canada Crypto Week runs July 20–22 in Toronto (Blockchain Futurist Conference, ETHToronto), followed by ETHGlobal's Pragma Lisbon on July 23.

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When the ETF crowd is running out the door at record pace and Nasdaq is signing on-chain data deals the same day, you're not watching a market die — you're watching it change hands. ☕₿