Bitcoin Drops After Whale Activity and Options Expiry

Bitcoin started the week trading above $110,000 but declined sharply following the sudden reactivation of a long-dormant wallet containing over 80,000 BTC (worth approximately $8.7 billion). Although the coins were not sold, the movement sparked uncertainty in the market.

This coincided with the expiration of over $3.6 billion in Bitcoin and Ethereum options, increasing volatility and triggering liquidations. Bitcoin ended the week at around $107,900, marking a weekly loss of approximately 3.2 percent.

Ethereum Focuses on Stability and Layer-2 Growth

At the Ethereum Community Conference (EthCC) in Cannes, Ethereum co-founder Vitalik Buterin emphasized the network’s long-term reliability. According to Buterin, Ethereum's strength lies in its predictable and robust infrastructure, which continues to attract institutional users.

Ethereum’s Layer-2 ecosystem also expanded, with notable activity on networks like Base and zkSync. Base set a new record with over 2.3 million daily transactions, reflecting increased adoption.

Despite the positive technical momentum, ETH followed broader market trends and closed the week down by about 4.1 percent, at approximately $2,520.

European Regulation Takes Center Stage

The European Union is set to enforce key parts of the Markets in Crypto-Assets (MiCA) regulation on July 10. These new rules will affect stablecoin issuers, wallet providers, and crypto exchanges operating within the EU.

Companies are adjusting operations to comply with requirements regarding custody, capital reserves, and consumer protection. The upcoming deadline has already caused shifts in trading behavior among European users.

Memecoins Experience Volatility

Memecoins saw renewed attention earlier in the week. Analysts speculated that Dogecoin could reach up to $1.60 within the next year based on historic cycle behavior. DOGE rallied over 6 percent midweek before correcting on Friday.

Other memecoins such as BONK and WIF experienced brief spikes in price but failed to hold gains, highlighting the speculative nature of these assets.

Outlook for the Coming Week

Several key events are likely to influence the crypto market over the next seven days:

  • July 10: Enforcement of MiCA regulations in the EU

  • July 14–18: “Crypto Week” in the U.S. Congress, where multiple bills related to digital assets will be reviewed

  • July 20 (estimated): Bitcoin ETF quarterly rebalancing deadline

Weekly Summary

Asset

Weekly Performance

Notable Drivers

Bitcoin

−3.2%

Dormant whale activity, options expiry

Ethereum

−4.1%

L2 growth, institutional messaging, market trend

Dogecoin

+6.4% (peak)

Speculative rally, later correction

Total Market

−3.8%

Risk-off sentiment, reduced liquidity

Conclusion

This week highlighted both the strengths and vulnerabilities of the crypto market. While prices fell across the board, Ethereum's ecosystem showed meaningful growth, and regulatory clarity is beginning to take shape in both Europe and the United States.

The market remains in a consolidation phase, but upcoming policy decisions and institutional activity are likely to determine its next major direction.