CryptoQuant Sees Bear Market End Nearing as CLARITY Act Stalls

Crypto markets showed signs of a potential shift this week, with CryptoQuant pointing to growing whale accumulation across Bitcoin, Ethereum, and XRP as evidence that the bear cycle may be entering its final stage. The firm cautioned, however, that another leg lower remains possible before a durable bottom is confirmed.

Meanwhile, Bitcoin developers launched a large-scale AI-assisted security sweep following the Coldcard exploit, uncovering dozens of critical vulnerabilities across hundreds of projects.

In Washington, progress on crypto regulation stalled as the U.S. Senate postponed a vote on the CLARITY Act until September, with lawmakers still divided over key provisions.

1. CryptoQuant sees signs the bear market may be nearing its end

CryptoQuant said whale accumulation across Bitcoin, Ethereum, and XRP could indicate that the crypto bear market is approaching its final stage. Bitcoin whale holdings have increased from 2.87 million BTC in December 2025 to 3.06 million BTC, while Ethereum wallets holding between 10,000 and 100,000 ETH now control a record 19.6 million ETH.

The analytics firm said large holders absorbing supply could reduce downside pressure, but stopped short of calling a definitive bottom. Bitcoin remains above its estimated realized price of $52,900, and CryptoQuant warned that valuations still leave room for another decline before a lasting recovery takes hold.

2. Bitcoin Red Team finds 85 critical security vulnerabilities

The Bitcoin Red Team identified 85 critical vulnerabilities across 390 Bitcoin-related projects during an AI-assisted security review. The 16-developer volunteer group reported 635 high-severity vulnerabilities and nearly 5,000 total findings in less than 24 hours, with affected projects now working to verify and address the issues.

The effort follows the Coldcard wallet exploit, which reportedly resulted in losses of as much as $114 million after attackers exploited a firmware vulnerability dating back to 2021. The incident has increased scrutiny of Bitcoin security infrastructure, while the scale of the Red Team's findings highlights both the potential and challenges of using AI to accelerate code audits.

3. Senate postpones CLARITY Act vote until September

The U.S. Senate postponed its expected vote on the CLARITY Act until after the summer recess, delaying progress on legislation intended to establish a clearer regulatory framework for the crypto market. Lawmakers were unable to resolve disagreements over key provisions before leaving Washington, while other legislative priorities also competed for limited floor time.

Senate Majority Leader John Thune indicated that the bill will remain a priority when lawmakers return in September. Industry groups expressed disappointment but remain optimistic that lawmakers can find sufficient common ground, although the delay leaves the bill facing a tighter legislative calendar ahead of the midterm elections.