Cryptocurrency investor sentiment took another hit at the beginning of the week, when analytics providers revealed that the U.S. government made a $300 million crypto transfer to Coinbase Prime, in a potential sign of more selling pressure for digital assets.

However, investor morale staged a marginal recovery as Galaxy Digital announced pledging up to $5 million in grants to open-source developers 👨‍💻, as part of the firm’s efforts to prepare Bitcoin for a quantum computing breakthrough.

Elsewhere, Russia’s parliament gave preliminary approval to a bill that would establish a domestic cryptocurrency market framework, marking the country’s most significant regulatory move towards the crypto industry.

Meanwhile, the U.S. Senate unanimously adopted a resolution opposing the offer of clemency to Sam-Bankman Fried, the former CEO of defunct FTX exchange 💥, which collapsed in 2022 and caused a shortfall of $8.9 billion for investors.

Lastly, analytics providers pointed to early signs of demand from new Bitcoin buyers, signaling more foundational buying pressure as long as Bitcoin’s price manages to trade within the entry range of new investors.

📊 Crypto Market Analysis And The Most Important News In Web3

🇺🇸 US Government Transfers $300 Million In Seized Crypto To Coinbase

🏦 Galaxy Pledges $5 Million To Quantum-Proof Bitcoin

🇷🇺 Russia Moves Closer To Crypto Market Regulation

⚖️ US Senate Adopts Unanimous Resolution Opposing Clemency For SBF

🔮 Analysis And Key Events That Will Shape The Crypto Market Next Week

💸 US Government Transfers $300 Million In Seized Crypto To Coinbase

The United States government transferred nearly $300 million worth of seized cryptocurrency to Coinbase Prime, raising investor concerns over more selling pressure for the leading digital assets.

The U.S. government quietly transferred about $300 million in digital assets, including $244 million in Bitcoin and $53 million in Ether, to Coinbase Prime deposit addresses, according to blockchain analytics platform Arkham.

👀 The transfer drew significant attention from crypto market participants, as it could precede a potential sale that would be in direct conflict with President Trump’s executive order from March 2025, which said that the US government would not be allowed to sell its seized digital assets.

However, the transfer to Coinbase Prime is not necessarily a sign of selling, as the platform provides institutional-scale custody, trading, financing and staking services.

Still, this marked one of the largest digital asset transfers from the U.S. government-labelled wallet. The government still holds a total of $20.7 billion in crypto, primarily comprised of $20.4 billion in Bitcoin and $125 million in USDT 💰.

Galaxy Pledges $5 Million To Quantum-Proof Bitcoin 🔐

Galaxy launches a new initiative seeking to fortify the Bitcoin network against the threat of a quantum-computing breakthrough, dubbed the Bitcoin Quantum Readiness Initiative.

As part of the initiative, Galaxy pledged $5 million in grants to open-source developers building post-quantum cryptography for Bitcoin, with applications opened on July 2.

The company also pledged to release research and formed a new quantum advisory council that includes Barry Sanders, professor and scientific director of Quantum City at the University of Calgary; Damien Bérubé, an MIT Sea Grant Knauss fellow; and Eran Tromer, professor of computer science at Boston University 🧪.

⚠️ Bitcoin’s quantum security became a pressing concern earlier in 2026, after wealth management firm Bernstein said Bitcoin has only about 3 to 5 years to prepare for a post-quantum security upgrade.

However, Blockstream CEO Adam Back said that Bitcoin faces no quantum threat for at least another 20 to 40 years, giving developers ample time to adopt new quantum-resistant signature schemes.

Analytics provider Glassnode estimated that about 30% of Bitcoin’s supply is currently vulnerable to a quantum computing breakthrough ⚛️ .

🇷🇺 Russia Moves Closer To Crypto Market Regulation

Russian regulators are moving closer to adopting the country’s first comprehensive crypto market framework, in a significant milestone for global cryptocurrency adoption.

Russia’s lower house of parliament, the State Duma, approved bill No. 1194918-8, titled “On Digital Currency and Digital Rights,” in its 2nd and 3rd readings on Tuesday, state parliamentary records show.

Upon full approval, the bill would establish rules for crypto companies such as exchanges, asset managers, brokers, and custodians. It would also enable the use of crypto assets in foreign trade 📜.

The bill marks Russia’s most significant regulatory step towards creating a comprehensive crypto market framework. The bill now requires approval from the Federation Council and President Vladimir Putin’s signature to be signed into law.

The law would give the country’s central bank, the Bank of Russia, complete oversight over the domestic cryptocurrency market and the ability to determine which tokens will be offered through licensed intermediaries 🏦.

Russia has a significant domestic cryptocurrency market. It ranks as the world’s 10th largest country in terms of cryptocurrency adoption, according to the Chainalysis index.

⚖️ US Senate Adopts Unanimous Resolution Opposing Clemency For SBF

The United States Senate unanimously approved a resolution opposing clemency for Sam Bankman-Fried, the former CEO of crypto exchange FTX, which resulted in a near $9 billion loss of investor funds following its bankruptcy.

The Senate adopted a resolution opposing executive clemency for Bankman-Fried, also known as SBF, who was accused of creating the crypto industry’s largest bankruptcy case. The measures were adopted on July 16, according to the Senate Press Gallery 🏛️.

While the measure can’t block a potential presidential pardon, it shows that most Senate members are opposed to the idea of executive clemency, which SBF was seeking from President Donald Trump.

SBF was sentenced to 25 years in federal prison in March 2024 for fraud and conspiracy charges tied to FTX’s downfall in 2022 🚨.

The downfall of FTX and its over 150 subsidiaries created an $8.9 billion shortfall in investor funds, as FTX user funds were used to prop up accounts in sister trading firm Alameda Research. Lawyers now refer to this as the “Alameda Gap.”

FTX’s downfall triggered one of the industry’s most brutal crypto winters, which led to Bitcoin’s price finding a cycle bottom around $16,000 📉.

📈 Market Overview: Bitcoin Briefly Tops $66,000 As Short-Term Holders Show Early Signs Of Demand

Cryptocurrency markets continued their sideways action, as risk appetite remained limited by a lack of fundamental catalysts and the cyclical summer illiquidity.

The top cryptocurrencies traded mostly flat for the past week, with Bitcoin nudging a 0.1% weekly increase, while Ether logged a 1% decline, according to CoinStats data.

In a silver lining to the price action, Bitcoin’s price briefly broke above the $66,000 psychological level earlier in the week, which analytics provider CryptoQuant interpreted as a potential sign of growing market demand.

However, a significant price breakout would need to see eclipsed spot demand before a significant move up, wrote CryptoQuant’s analyst, adding:

✍️ “No overheating yet, but not a rally on solid footing either. Watch for spot volume to actually warm up before chasing price.”

Bitcoin’s short-term-holder (STH) cost basis distribution heatmap provided another signal of more incoming demand from new buyers in the $62,000 to $65,000 range, wrote Glassnode’s lead research analyst, Cryptovizart:

💬 “This is a double-edged structure. On one hand, buyers aggressively accumulated into the strength, creating a potential cost basis floor that could support a further test of $66k and above. On the other, much of this accumulation was concentrated toward the tail end of this local rally, which raises the risk of a local top formation if price fails to breach $66k convincingly.”

Still, Bitcoin traders looking to take long positions should be cautious of the $69,500 price level, which is the current STH average cost basis and acts as the next critical support level, according to Glassnode.

STHs represent some of the weakest holders in the Bitcoin community and are prone to panic selling when faced with paper losses 📉.

As for the broader cryptocurrency markets, altcoins continue to bleed compared to the top 10 cryptocurrencies.

Looking at tokens launched since 2024, only 8 out of 113 cryptocurrencies are trading above their Token Generation Event (TGE) price, while the other 105 are deeply in the red, wrote data platform CryptoRank:

💬 “This highlights how difficult it has been for newly launched tokens to sustain their initial valuations. Strong post-TGE performance remains the exception, while most projects have experienced severe and persistent drawdowns.”

🐦 Tweets & Memes

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Thank you for reading the weekly CoinStats Scoop Newsletter.

CoinStats will continue to guide you through the world of crypto and DeFi. We’ll see you next week for another edition of CoinStats Scoop! 😎