Bitcoin News Today: Bitcoin Exchange Reserves Drop 2% as Stablecoin Market Surges 14% Since January

Bitcoin exchange reserves fell by 2 percent in July 2025 as investors increasingly withdrew Bitcoin from exchanges to hold long-term, reflecting a growing bullish sentiment. This trend, which has seen reserves drop 14 percent since January, marks the first time since 2018 that less than 15 percent of the total Bitcoin supply is held on exchanges and over-the-counter (OTC) desks. Analysts suggest this declining supply could lead to a future supply shock if demand increases, potentially fueling price appreciation [1].

At the same time, the stablecoin market experienced a significant boost following the passage of the GENIUS Act on July 18, which established a clear regulatory framework for stablecoins in the U.S. The market cap of stablecoins grew by nearly $4 billion in the month following the legislation, surpassing $250 billion. Monthly active stablecoin addresses also rose by over 20 percent, reaching 38 million, highlighting growing adoption and engagement [2].

Industry leaders, such as Fabian Dori, Chief Investment Officer at Sygnum, noted that the regulatory clarity provided by the GENIUS Act encourages innovation and enables the development of new stablecoin-based financial services. Despite the Act not mandating interest-bearing features for stablecoins—a point of industry debate—it was widely seen as a major step forward in legitimizing the sector [3].

The decline in Bitcoin exchange reserves and the rise in stablecoin usage signal broader shifts in investor behavior. The drop in available BTC on exchanges indicates a shift from short-term trading to long-term holding, reducing liquidity and potentially increasing volatility. Meanwhile, stablecoin growth reflects confidence in the utility of digital assets for payments and broader financial services.

Beyond Bitcoin and stablecoins, the tokenized real-world asset (RWA) market continued its expansion in July, surpassing $25 billion. This 2.6 percent growth was driven by tokenized private credit and U.S. Treasury debt, which saw over 260 percent growth year-to-date. Tokenized stocks also gained traction, with their value rising by 15 percent to over $400 million, supported by increased trading activity and new offerings from platforms like Robinhood [4]. However, legal uncertainties persist, particularly regarding the rights of token holders in private firms, signaling the need for further regulatory clarity to support sustainable growth [5].

On the regulatory front, Missouri, New Hampshire, and Oregon enacted new crypto-related laws in July. Missouri recognized metals-backed electronic currencies as legal tender and imposed regulations on crypto ATMs. New Hampshire formed a committee to explore regulatory frameworks for stable tokens and RWAs, with expected findings by November. Oregon updated its abandoned property laws to include crypto assets, requiring holders to remit or liquidate them after three years [6].

Arizona’s Governor Katie Hobbs vetoed a proposed bill that would have created a state stockpile from seized crypto assets, citing concerns that it could weaken law enforcement cooperation. The decision highlighted the ongoing debate over how to balance state interests with effective enforcement strategies in the crypto space [7].

Globally, regulatory progress continued as seven countries introduced new licensing frameworks or issued licenses to crypto firms in July. The Hong Kong Monetary Authority finalized stablecoin regulations and launched a public registry for issuers. European firms including Bybit, OKX, and CoinShares secured licenses under the EU’s MiCA framework, while Ripple and AllUnity advanced expansion plans in Europe. Bitstamp also received approval to serve customers in Singapore [8].

In the U.S., Ripple and Circle are seeking national banking licenses from the Office of the Comptroller of the Currency. If granted, these licenses would allow them to offer custodial services under federal supervision, streamlining operations and reducing the complexities of state-by-state compliance [9].

The July 2025 developments underscore a maturing crypto market, driven by regulatory clarity, investor confidence, and technological innovation. The decline in Bitcoin exchange reserves and the surge in stablecoin usage reflect a shift toward long-term investment and broader adoption of digital assets in mainstream financial services. As tokenized RWAs and global regulatory progress continue to unfold, the industry appears poised for sustained growth and deeper integration into the global financial ecosystem.

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[1] https://en.coinotag.com/bitcoin-exchange-reserves-decline-amid-stablecoin-growth-following-genius-act-passage/