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Crypto news Jul 9: geopolitics drags Bitcoin below $62K

Overnight US strikes on Iranian targets in the Strait of Hormuz triggered broad risk-off sentiment: Bitcoin slid from $63,300 in the morning to below $62,000, Ethereum and XRP lost more. The region's second MiCA week passed without new approvals, but Binance, pushed out of the EU, is weighing Latvia as a possible MiCA home.

Toms Ābeltiņš

9 July 20266 min read

Wednesday, July 8: after a few days of recovery, the crypto market turned lower again as the US carried out new airstrikes on Iranian targets in the Bandar Abbas area following attacks on ships in the Strait of Hormuz. Bitcoin slid from $63,318 to below $62,000, Ethereum traded at $1,733 and XRP at $1.08, both losing more than two percent. No new CASP approvals were announced in the Baltic and Nordic markets on Wednesday, but attention was drawn to news that Binance is evaluating Ireland and Latvia for a future MiCA licence. US spot Bitcoin ETFs broke a ten-day outflow streak in early July with a $221.7 million inflow, but year-to-date outflows still stand at $5.4 billion.

Wednesday, 8 July 2026 was a cautious day for the crypto market: after a few days of recovery, prices turned lower again as the United States carried out new airstrikes on Iranian targets overnight into Wednesday, following attacks on commercial vessels in the Strait of Hormuz. Bitcoin opened the morning at around 63,300 dollars and slid below 62,000 during the day, while Ethereum and XRP lost more. In the Baltic and Nordic markets, the second week of the MiCA regime passed without major new regulatory approvals, but attention was drawn to news that Binance, pushed out of the EU, is considering Latvia as one of its possible MiCA homes.

Market: geopolitical shock pushes Bitcoin down

Bitcoin opened Wednesday at 63,318 dollars and by the US morning hours had slid to around 62,000, losing about two percent on the day. Ethereum traded at 1,733 dollars (down 2.3 percent) and XRP at 1.08 dollars (down 3.9 percent). The drop was driven by broad risk-off sentiment after the US carried out overnight strikes on Iranian targets in the Bandar Abbas area, in response to attacks on commercial vessels, including a Qatari LNG tanker, in the Strait of Hormuz. The truce reached in April effectively collapsed, and President Donald Trump said he considered it over. Crypto continues to behave like a risk asset in such moments: as geopolitical uncertainty rises and equities fall, Bitcoin follows suit, and leveraged positions amplify the swings through automatic liquidations.

Binance weighs Latvia as a possible MiCA home

The most significant news for the region came from Binance, the world's largest exchange, which suspended core services for EU users after missing the MiCA deadline and saw roughly 2.4 billion dollars in monthly outflows in early July. After withdrawing its application in Greece, the company now publicly says it is evaluating Ireland and Latvia for a future MiCA licence. If Binance chose Latvia as its European base, that would be a significant step for a region where MiCA licensing has already become a competitive advantage. At the same time, it should be noted that this is still only under consideration, not a submitted application, and the final word rests with the Bank of Latvia as the competent authority.

Region: competition among licensed exchanges keeps growing

The Baltic and Nordic markets saw no major new approvals over the past 24 hours - neither the Bank of Latvia, the Bank of Lithuania, nor Finland's FIN-FSA announced new CASP licences on Wednesday. The broader picture nonetheless remains dynamic: the ESMA-based CASP Tracker registry lists nearly 300 licensed service providers, Norway's Firi retains its position as the largest Nordic exchange with more than 400,000 users, and Finland's Coinmotion and Northcrypto continue operating under FIN-FSA authorisations. Bybit is gradually restricting EEA residents' access to Bybit Global, steering customers toward the Austria-licensed Bybit EU. For users in the region, this means the shift toward licensed platforms keeps growing, and competition for former Binance and Bybit Global customers is working in their favour.

ETF flows: the recovery stalls

US spot Bitcoin ETFs broke a ten-day outflow streak in early July with a 221.7 million dollar inflow - the largest daily volume in two months - but year-to-date net outflows still stand at roughly 5.4 billion dollars. Wednesday's geopolitical shock halted this fragile recovery: institutional demand typically pulls back in moments of geopolitical uncertainty, and analysts warn that without sustained inflows, July's rebound could prove short-lived. Investor attention now turns to the US inflation data due 14 July and the Federal Reserve meeting on 28-29 July.

Coinbase expands, SEC prepares regulatory changes

Outside the region, Coinbase continues to expand aggressively: the exchange is offering a 5 percent equivalent Bitcoin rebate on transfers of up to one million euros before 14 July and has secured a UK licence allowing it to offer equities and perpetual futures beyond pure crypto. Meanwhile, the US Securities and Exchange Commission is preparing a broad "Regulation Crypto" agenda aimed at clearer rules for digital asset brokers and trading platforms. For users in the region, these steps are an indirect signal that major jurisdictions continue building clearer frameworks, which in the long run reduces regulatory uncertainty for European platforms as well.

What it means for users

Wednesday's overall picture leaves users in the region with three takeaways. First, geopolitics has again become the main market driver - the tension in the Strait of Hormuz shows how quickly crypto follows equity and energy markets, making leveraged positions especially risky on days like this. Second, Binance's consideration of Latvia as a MiCA home is noteworthy, but for now it remains at the intent stage, and users have no reason to change their choices based on an application that has not yet been submitted. Third, the range of licensed platforms in the region keeps expanding, and it is the MiCA licence itself, not marketing promises, that remains the key safety criterion when choosing an exchange.

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