💵 Solana and Ethereum are Pushing to Trigger the Bull Reversal

Hello dear subscribers! Today we’ll be covering:

• Surfing the Market, with Mid Caps Index and SOL analysis.
• Don’t miss the News about Crypto weekly inflows and Vietnam’s Crypto Law Approval.
• Stacks is under the spotlight.
• A short article about: From High-Beta Asset to Long-Horizon Allocation.

The market is starting the week with a solid push after a nice weekend recover.

Let’s start taking a look into the Mid Caps Index for example which is pushing straight on the confluence of resistances (the main downtrend and the horizontal level at $9.7)

Breakout here would trigger the bullish reversal continuation:

And SOL is a good example, pushing on the confluence too. Breakout over the $163 range trigger the bullish reversal:

Crypto Funds Attract $1.9B Weekly Inflows Despite Geopolitical Tensions

Healthy capital injections into crypto funds persisted for a ninth straight week, as CoinShares data highlights durable demand for digital-asset investment products despite ongoing geopolitical tensions.

Highlights:

• Weekly Net Inflows: $1.9B of fresh capital flowed into crypto funds last week, highlighting robust market interest.
• Consecutive Positive Weeks: Nine straight weeks of positive flows demonstrate enduring investor confidence.
• Nine-Week Aggregate: Total inflows since late April reached $12.9 B, underlining sustained momentum.
• Record YTD Flows: Year-to-date net inflows climbed to $13.2 B, marking a new all-time high.
• Asset Leadership: Bitcoin products led with $1.3 B and Ethereum with $583 M, showing top asset preferences.

Vietnam Greenlights Crypto Assets and Propels Digital Tech Ambitions

Vietnam’s National Assembly passed the Law on Digital Technology Industry on June 14, 2025, establishing the first standalone crypto-asset regulatory framework in the world.

Highlights:

• Regulatory Recognition: Formalizes crypto assets under a dedicated law, creating clear legal status.
• Asset Classification: Splits digital assets into “virtual assets” and “crypto assets” to streamline oversight.
• Security & AML Requirements: Imposes FATF-aligned cybersecurity and anti-money-laundering measures.
• Industry Incentives: Provides tax exemptions, land-use perks, and R&D grants to spur AI, semiconductor, and infrastructure growth.
• Workforce & Education: Directs local governments to subsidize training programs and integrate digital-tech curricula nationally.

Project Research: Stacks

The Origins:

Stacks is a Bitcoin Layer 2 network that adds smart contract and dApp functionality to Bitcoin through a separate execution layer anchored to the Bitcoin blockchain. It is designed to expand the Bitcoin economy without requiring changes to the Bitcoin base layer.

The Operative:

Stacks uses a consensus mechanism called Proof of Transfer (PoX), which records its blocks on the Bitcoin blockchain. This mechanism enables decentralized applications on Stacks to reference Bitcoin finality without modifying the Bitcoin protocol.

A key component of the system is sBTC, a 1:1 Bitcoin-backed asset designed to bring Bitcoin liquidity into DeFi use cases. The network aims to make sBTC fully trustless, giving users programmatic control over their BTC while interacting with smart contracts on Stacks.

The recent Nakamoto upgrade introduced changes to block production and confirmation to reduce latency and increase throughput, improving responsiveness for applications. Additionally, fee abstraction is being tested, allowing users to pay network fees in assets like sBTC instead of STX.

Funding & Competitors:

Stacks raised ~$50M in its public offering in 2017. The offering was qualified under the U.S. SEC’s Regulation A+, one of the first cases of regulatory compliance for a token sale in the U.S.

The native Token is $STX and it’s used for transaction fees, executing smart contracts, and PoX participation. The max suppy is capped at 1.818 billion STX; holders can lock tokens to secure the network and earn BTC through PoX.

Stacks focuses on extending Bitcoin’s programmability by offering a smart contract environment anchored to Bitcoin’s security. Its design emphasizes compatibility with existing Bitcoin infrastructure, while introducing assets like sBTC and features like fee abstraction to facilitate user interaction.

Competing or adjacent projects include:

• Rootstock (RSK).
• Liquid Network.
• MintLayer.
• Botanix.
• Sovryn.

Interest in Bitcoin Layer 2 networks is increasing as developers seek to build more complex applications on top of Bitcoin. The push to integrate Bitcoin into smart contract ecosystems reflects a broader effort to balance programmability with base-layer security, though technical and adoption challenges remain.

From High-Beta Asset to Long-Horizon Allocation

Bitcoin is changing… or rather, it already has. Let’s take a look at how it evolved from a speculative asset to a key component in institutional portfolios.

In its early years, Bitcoin was the epitome of a high-beta asset: extremely volatile, highly sensitive to macroeconomic shifts, and driven by speculation. Its price soared during periods of euphoria and crashed just as fast at the slightest hint of fear. For traditional investors, it was unacceptable as part of any serious strategy, but for traders, it was Disneyland. Over time, however, Bitcoin has begun to transform. It’s no longer seen merely as a risky bet or a trader’s playground. It’s now entering serious portfolio conversations, not as a luxury, but as a long-horizon strategic allocation.

What changed?

• Increased liquidity: market depth has grown significantly. Large orders can now be executed with much less price impact compared to just a few years ago.
• Institutional infrastructure: regulated custodians, spot ETFs, and access through traditional platforms have made it easier for serious capital to enter the space.
• A stronger narrative: Bitcoin has solidified its position as a digital store of value, like gold, but more portable, divisible, and verifiable.
• Historical performance: despite its volatility, its cumulative return has outpaced nearly every other asset in the past decade (only $NVDA comes close).

BTC as Part of a Diversified Portfolio

Portfolio managers and analysts are now seriously evaluating the effects of including BTC in balanced portfolios. What have they found?

• Even a small allocation (1–5%) can improve the Sharpe ratio (risk-adjusted return).
• Its long-term correlation with stocks and bonds remains low.
• It can act as a hedge in certain macro scenarios, such as high inflation distrust in fiat currencies, or even geopolitical conflicts.

For these reasons, BTC is no longer viewed solely as a high-risk asset, but rather as a potential tool to diversify and strengthen long-term portfolios.

But is it still volatile? Yes! And it probably will be for a while. But that volatility is becoming more predictable, and its impact better understood. What matters is that Bitcoin is no longer a fringe asset, it’s becoming institutionalized.

Final Take

Bitcoin’s story is one of transformation. From a speculative asset powered by retail sentiment and leverage, it’s evolving into a legitimate asset class for sophisticated (AKA boring) investors. It’s not that the risk is gone, it’s that the risk can now be rationally incorporated into a long-term strategy.

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