

Velvet fell 37% on July 24 as $32.33 million in leveraged capital exited the perpetual market and short positioning intensified, according to CoinGlass data. "The decline in leveraged capital weakened VELVET's derivatives market and left price support increasingly dependent on spot demand," CoinGlass data showed. Whale vs Retail Delta climbed to 0.098, one of the highest readings this year, confirming elevated whale participation during the sell-off. The Funding Rate dropped to -0.0314%, with short traders paying longs to maintain positions — the most negative reading since June 29. Before that decline, positive Funding Rates showed that long positioning dominated the market. Afterward, positive readings remained close to neutral, suggesting that bullish leverage had weakened considerably. The sell-off resembled DeXe's 87% crash after both tokens previously led the market's gainers. Across 15 days, total leveraged outflows reached $516 million, while Netflow stood at approximately $16.1 million. Net outflows over the past day hit $1.55 million. Despite the crash, VELVET retained a 367% gain over the past 90 days. Spot Netflow fell to -$357,000, showing that exchange outflows exceeded inflows — a pattern that may indicate accumulation because tokens leaving exchanges become less immediately available for sale. Over seven days, Spot Netflow reached -$1.03 million, maintaining the pattern of net exchange outflows. Sustained spot demand could cushion VELVET's decline, though weak derivatives positioning may delay a broader recovery. If the pattern from late June repeats, limited long positioning could reduce the likelihood of a leverage-driven rebound. This article is for informational purposes only and does not constitute investment advice.

Dogecoin fell 5.3% to $0.0685 after Elon Musk told The Economist he got "carried away" with politics and his role leading the government's DOGE department. "I think I got a little too involved in politics, got carried away, frankly," Musk, chief executive officer of Tesla Inc. and SpaceX, said in the interview published Thursday. The memecoin's decline pushed its weekly loss to 5%, with 24-hour trading volume reaching $690 million, according to CoinGecko. Musk donated more than $250 million to back President Donald Trump's 2024 campaign and later led the Department of Government Efficiency, a cost-cutting initiative that shut down July 4 after cutting jobs and funding across federal agencies. The admission raises questions about Musk's future engagement with the crypto sector, given his history of influencing Dogecoin prices through social media posts and public appearances. DOGE now faces a key support test at $0.0650, a level not breached since early June. Musk's four-month stint at DOGE ended in late May 2025, after which he and Trump had a falling out over the One Big Beautiful Bill Act. The relationship later mended, with Musk attending a White House dinner in November and joining Trump on a trip to China with other tech leaders in May. The billionaire's political involvement spilled over onto his companies, with Tesla's stock sinking during his time in the administration. Musk had also explored launching a third political party, though the effort never materialized. For Dogecoin, the risk is that Musk's retreat from politics could also mean reduced engagement with the memecoin he has long championed. The token remains the largest memecoin by market capitalization but has struggled to reclaim levels above $0.10 since late 2024. This article is for informational purposes only and does not constitute investment advice.

**Key Takeaways:** - Institutional funds increased average STRC position 105% to $3.5 million per fund - BlackRock and VanEck led $756 million in inflows into Strategy's preferred security - Retail ownership of STRC fell to 71% from 78% between March and July Institutional funds increased their average position in Strategy's preferred security STRC by 105% to $3.5 million per fund, according to a disclosure from Chief Executive Officer Phong Le on Thursday. "The institutions are coming," Le said in a post on X, citing data showing retail ownership of STRC declining to 71% from 78% between March and July as large-scale buyers entered the instrument. BlackRock and VanEck led $756 million in inflows into STRC, the company's preferred security known as "Stretch" that Strategy uses as a vehicle to raise capital for Bitcoin purchases. The concentration of institutional capital reflects growing confidence in the Bitcoin accumulation model the company has been executing since 2020. The displacement of retail investors is a structural shift in STRC's holder base. As funds enter with average positions in the millions of dollars, individual investors face relative dilution in both influence and market entry conditions. The preferred structure of STRC offers priority over common shares, making it attractive for institutions seeking Bitcoin exposure with downside protection. Strategy is scheduled to report second-quarter 2026 earnings on July 30, when the market will see the full scope of Bitcoin purchases funded by the recent capital raise. The company held more than 500,000 Bitcoin as of its last disclosure, making it the largest corporate holder of the cryptocurrency. This article is for informational purposes only and does not constitute investment advice.