New Huo Technology said crypto markets are under short-term pressure after a fresh round of U.S. military strikes on Iran sharply raised tensions in the Middle East last week. The report said oil prices climbed strongly and lifted U.S. Treasury yields, while risk assets across Asia weakened. South Korea’s Kospi at one point dropped 4%. With gold softening and the U.S. dollar staying firm, external conditions weighed on risk appetite in digital assets.
Stablecoin supply and exchange turnover both declined
According to the report, total stablecoin market capitalization has fallen by $10 billion since May. Net outflows in June alone reached $7.7 billion. Weekly trading volume at South Korea’s five largest crypto exchanges also slipped below 10 trillion won, marking the lowest level in nearly two years and nine months.
New Huo Technology said the combination of rising geopolitical risk and shrinking on-market liquidity has pushed crypto into a defensive phase dominated by safe-haven sentiment in the short run. The report added that Bitcoin is currently trading within what it described as a “high cost-performance range.”
Ethereum activity and compliance developments offered some support
Even as the broader market remained under pressure, the report pointed to several constructive signals. Robinhood’s Layer 2 network recorded more than $70 million in bridged ETH during its first week after launch, which it said helped improve sentiment around the Ethereum ecosystem. Circle was also approved to establish a U.S. national trust bank, a move the report said added confidence to the industry’s long-term compliant capital channels.
AI stocks corrected as macro risks grew
The report also flagged weakness in the AI segment. Last week, U.S. AI-related stocks pulled back by more than 30% on average from recent highs. Micron fell 30%, Sandisk dropped 37%, and SK hynix declined 35%.
On the policy front, New Huo Technology said the U.S. Senate is set to review the CLARITY Act on July 20. It said the main disputes around the bill currently center on three issues: ethical restrictions on government officials participating in the crypto industry, liability exemptions for software developers, and incentive mechanisms for stablecoins. The report said the direction of the bill could reshape the industry’s future compliance framework.
Markets are watching oil, the dollar and the Senate review
The report said the spillover from a worsening Middle East situation may extend beyond energy prices. It could also raise concerns about a rebound in inflation and, in turn, affect expectations for Federal Reserve policy. The Bank of Japan is expected to keep rates unchanged in July, which the report said may temporarily ease the liquidity shock tied to yen carry trades.
New Huo Technology said investors should keep a close eye on oil price moves and on how a strong dollar transmits pressure to risk assets. It also noted that Hyundai Motor has become the first major South Korean company to introduce internal stablecoin transfers, a sign that adoption of Web3 technology by traditional large corporations is accelerating.
In its market view, the institute said crypto is now in a phase shaped by a contest between macro safe-haven demand and trading opportunities. With Middle East tensions and capital outflows both hitting sentiment, bullish momentum is temporarily constrained. Before next week’s key regulatory bill reaches a conclusion, off-market capital is largely staying on the sidelines, and the market will most likely remain range-bound while searching for liquidity.