Digital assets entered another week in which market sentiment and structural progress diverged, with prices retreating even as institutional adoption continued to advance. Renewed geopolitical tensions weighed on broader risk assets, while regulators, traditional financial institutions and digital asset platforms continued building the infrastructure supporting the next phase of digital asset adoption.

Digital assets recovered over the past week as ETF flows turned positive following June’s period of sustained outflows, while regulatory and market infrastructure developments continued to reinforce the asset class’s long-term institutional evolution.

Digital assets pulled back further this week, as the US-Iran peace process remained uncertain, leading to widescale risk-off behaviour across wider markets alongside ETF outflows.

Digital assets exhibited mixed performance with slight overall declines, as US-Iran peace talks faltered and analysts raised the possibility of interest rate hikes from the Fed this year.

Digital assets rallied after last week’s rout, as news of a US-Iran peace deal restored market confidence somewhat. Several major institutional names across asset management and banking deepened their involvement in the space, tokenisation demand continued to grow, international regulatory efforts advanced and the football World Cup shed further light on the nascent field of blockchain-based prediction markets.

Digital assets fell to yearly lows in the wake of continued conflict, cascading liquidations, and increased investor caution following last week’s sells by top Bitcoin treasury firm Strategy.