Bitcoin Dives on ETF Outflow, Russia’s State Duma Passed Crypto Law
Bitcoin (BTC) and other top digital assets dropped as sell pressure dragged cryptocurrency market capitalisation down. Trading data from across the cryptocurrency market showed BTC trading at $64k, a sharp decline of about $4k from this week’s peak price.
Reflecting bearish sentiment around BTC, the crypto market is down 0.94% to $2.19 trillion on Friday, primarily driven by a sudden reversal in Bitcoin-linked exchange-traded funds (ETF) flows and macro uncertainty.
After a seven-day inflow streak totalling $1 billion, spot Bitcoin ETFs experienced over $200 million in net outflows during the week. On-chain data showed BlackRock’s IBIT ETF moving over 3,126 BTC worth $203 million to Coinbase Prime, confirming the sell pressure.
This shift indicates that short-term institutional momentum, which had supported prices, has reversed, removing a key pillar of recent stability.
While the total market fell 0.94%, several major altcoins dropped 3–13%. For example, Stacks (STX) fell 13.36% after Binance placed it under a Monitoring Tag. Social sentiment remained in “Fear” territory, with bearish posts highlighting fears of a “final dump.”
The decline was broad-based, with altcoin weakness exacerbating the market-wide drop and reflecting a risk-off mood among traders.
The immediate focus is on Bitcoin’s ability to defend the $62K–$65K support range. The next key catalyst is the Federal Reserve’s policy decision on July 29, which will influence broader liquidity expectations.
If support holds, the market could consolidate. However, a break below $62K, coupled with ongoing ETF outflows, could trigger a sharper correction toward the next major support near $58K.
The market’s dip stems from a confluence of institutional selling (ETF outflows) and sector-wide risk aversion, magnified by altcoin liquidations.
While technical indicators like the RSI (48.5) are not yet oversold, the loss of the recent ETF inflow tailwind is significant.
Russia has passed its first comprehensive crypto market law that legally allows regulated crypto trading from 1 Sep, while keeping strict limits and ruble primacy.
Russia’s State Duma approved the On Digital Currency and Digital Rights bill, which establishes the country’s first full legal framework for digital asset markets and trading, overseen by the central bank.
Only firms in a special registry will be allowed to run exchanges and other crypto services, with a grace period until July 2027 for licensing, according to reports on the new framework and a CoinMarketCap community explainer.
The law takes effect on 1 Sep, and turns what was previously a legal grey area into a regulated market for trading and custody. Crypto itself does not become legal tender and the ruble remains the only official means of payment in Russia.
What this means: Crypto trading is moving from “unofficial but tolerated” into a permissioned, licensed market with central bank oversight, not into an unrestricted parallel money system.
For retail users, the law introduces annual purchase limits through licensed intermediaries, around 300,000 rubles in reported drafts, while qualified or institutional investors are not capped in the same way.
At the same time, the law keeps the existing ban on using digital currencies for everyday domestic payments, but allows exceptions for cross-border trade, mining settlements, securities and other digital assets.
Russia had already allowed businesses to use digital assets in international trade treated like foreign currency; this law formalises that approach and ties it into licensing and supervision. In practice, Russian users will see more on-ramp clarity and exchange options, but still within strict compliance corridors.
The timing overlaps with the European Union’s 21st sanctions package that targets Russian crypto networks and gives the EU power to ban transactions with foreign crypto providers used by Russia to evade sanctions.
Russian experts note that for normal companies, the domestic crypto law may matter more than sanctions in the short term, but cross-border payments will be squeezed as platforms are blacklisted and routes move to peer-to-peer and friendly jurisdictions. XRP Investors Positive on ETF Momentum, Ripple Deals
