Veteran investor Ross Gerber questioned whether Bitcoin has everyday practicality, stating on Sunday that it is "probably easier" to use gold in most places despite endless promises of cryptocurrency use cases.

Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, criticized the industry for limited value creation. He asked what value had been built beyond stablecoins, questioning the point of a monetary system that cannot be used.

Utility Debate

Leading cryptocurrency investor Scott Melker responded to Gerber's skepticism, pointing out that crypto-backed Mastercard Inc. and Visa Inc. cards allow users to spend Bitcoin almost everywhere. Gerber maintained his stance, suggesting the current utility remains limited compared to traditional assets.

Miner Pivot Concerns

Gerber also expressed concerns about large Bitcoin mining companies shifting hardware and capacity toward AI compute rather than pure-play Bitcoin mining. He stated this cannot be a good sign for Bitcoin, noting that GPUs have a much more important role in AI compute versus managing a blockchain.

CoinShares stated in a report that mining revenue is projected to plummet from around 85% of total revenue in early 2025 to less than 20% by the end of 2026 for companies that have secured AI contracts. Analysts estimate 20% of Bitcoin miner power capacity will shift to AI and high-performance computing by the end of 2027.

From Bull to Skeptic

Once a vocal advocate of Bitcoin, Gerber has grown more skeptical recently. In June, he said Bitcoin had "lost the narrative" while praising gold for its consistency as a stable asset. He also linked Bitcoin's underperformance to President Donald Trump’s profits from cryptocurrency businesses, suggesting this dented sentiment and industry legitimacy.

At the time of writing, BTC was exchanging hands at $63,459, up 0.60% in the last 24 hours.

Leading cryptocurrencies posted mixed gains on Sunday as markets absorbed the ongoing diplomatic impasse between the United States and Iran. Bitcoin (CRYPTO: BTC) rose 0.26% to trade at $63,119.16, while Ethereum (CRYPTO: ETH) advanced 0.73% to $1,893.34. Conversely, XRP (CRYPTO: XRP) declined 0.36% to $0.9971, and Solana (CRYPTO: SOL) fell 0.30% to $75.11. Dogecoin (CRYPTO: DOGE) gained 0.56% to reach $0.06996.

Market Sentiment and Liquidity

Despite price stability in major assets, market sentiment remained cautious. The Crypto Fear & Greed Index indicated prevailing "fear" among investors. Smart money sentiment, reflecting institutional capital allocation, turned "extremely bearish." Bitcoin’s open interest contracted by 0.29% over the last 24 hours.

Trading activity showed divergent patterns across assets. Bitcoin’s trading volume increased by 3%, with prices oscillating between $62,650 and $63,300. Ethereum experienced a more significant liquidity shift, with volume surging 30% later in the evening, though it failed to breach the $1,900 resistance level.

Derivatives markets saw substantial liquidations. Over $80 million was wiped from the cryptocurrency market in the last 24 hours. Long position traders accounted for nearly $50 million of these losses, according to Coinglass data.

Top Performers

Smaller-cap cryptocurrencies outperformed major assets. Bitway (BTW) led gains with a 28.29% rise to $0.3914. Velvet (VELVET) climbed 22.37% to $1.02, and Cap (CAP) increased 13.70% to $0.07097. The global cryptocurrency market capitalization stood at $2.17 trillion, reflecting a marginal 0.01% decline over the period.

Geopolitical and Macro Context

Equity futures traded mixed overnight. Dow Jones Industrial Average Futures fell 24 points, or 0.04%. S&P 500 Futures gained 0.06%, while Nasdaq 100 Futures added 0.17%.

The mixed performance coincided with reports of stalled peace negotiations between the U.S. and Iran. Iranian officials stated there has been "absolutely no progress" on reviving an interim deal, as shipping traffic through the Strait of Hormuz slowed significantly. President Donald Trump described U.S. negotiations with Tehran as "only semi-negotiating." Treasury Secretary Scott Bessent announced plans for fresh economic isolation measures "next week," calling them unmatched in history.

Investors are now focused on the Federal Reserve’s minutes from its July policy meeting, scheduled for release on Wednesday, for clarity on monetary policy direction.

What the Numbers Show

Analysts present conflicting views on market structure. Michaël van de Poppe, a chartist, described Bitcoin and altcoins as being in the "end stage of a bear market," characterized by low liquidity and volume. He projected this phase could last one to two months, noting that narrow trading ranges often precede a return of trend-driven liquidity.

Conversely, Ali Martinez highlighted on-chain growth metrics for Ethereum. New daily addresses rose from 121,000 to 212,000 within a week. Martinez stated that such network growth is a strong indicator of user adoption and has historically preceded major price rallies.