Meaningful regulatory progress could improve investor sentiment.

"Digital asset investment products recorded periods of renewed inflows during July, CoinShares reported in its weekly Digital Asset Fund Flows report, suggesting that some professional investors have continued adding exposure despite broader market uncertainty. Open interest and trading volumes have remained elevated compared with previous market cycles, reflecting continued participation from both institutional and professional traders."

"According to Citigroup, meaningful regulatory progress could improve investor sentiment, which has remained under pressure amid sustained spot Bitcoin ETF outflows."