On August 19, news reports indicate that the cryptocurrency market is on a downward trend, as of the time of publication,$Bitcoin (BTC.CC)$ down 1.19%, priced at $115,012.18; $Ethereum (ETH.CC)$ down 2.52%, priced at $4,231.42.
Key Highlights
Bitcoin's market dominance has declined from 65% to 59% over the past two months.
Bitcoin's market dominance has declined from 65% to 59% over the past two months, indicating an increase in the market capitalization share of other cryptocurrency assets.
The Federal Reserve terminates its regulatory program for cryptocurrencies and distributed ledger technology.
Last Friday, the Federal Reserve Board (referred to as the "Federal Reserve") closed its "Novel Business Activities" regulatory program established in 2023. At the launch of the program, the regulators stated that its purpose was "to ensure that risks associated with innovation are properly addressed." The program primarily applied to distributed ledger technology (DLT), crypto assets, banks that support the cryptocurrency sector, and complex technology-driven collaborations between banks and non-bank entities. The Federal Reserve indicated that it now has a more comprehensive understanding of the associated risks, and therefore these business activities can be included in the regular regulatory process.
In April of this year, the Federal Reserve also rescinded several regulatory letters related to cryptocurrencies and distributed ledger technology, including one that required a "no objection letter" prior to the initiation of relevant business activities. The restrictive regulatory approach of this program had a tangible impact on blockchain banking business plans. Information requests submitted to the Federal Deposit Insurance Corporation (FDIC) revealed that the program hindered the launch of the "USDF Consortium"—an alliance aimed at promoting interbank payments among community banks, which ultimately abandoned the plan due to these obstacles. Notably, this goal of promoting blockchain interbank payments is not exclusive to this consortium.
Strategy purchased $51.4 million in Bitcoin over the past week, with a holding valuation reaching $46.1 billion.
Bitcoin reserve and commercial software company $Strategy (MSTR.US)$ announced on Monday that between August 11 and August 17, 2025, the company purchased 430 bitcoins for a total price of $51.4 million. This increase brings the company's total bitcoin holdings to 629,376 bitcoins, valued at $46.15 billion.
Strategy relaxes stock sale rules to increase financing flexibility.
Strategy Inc., led by Michael Saylor, has adjusted its financing policy, no longer adhering to the previous restriction that "the stock price must be more than 2.5 times the value of Bitcoin holdings" for issuing additional common shares. Instead, it now allows issuance even below that threshold to facilitate flexible financing when necessary. Analysts believe this provides the company with more operational flexibility, including seizing opportunities to purchase Bitcoin.
KindlyMD Completes $200 Million Convertible Bond Financing to Increase Bitcoin Holdings
A Nasdaq-listed company $Kindly MD (NAKA.US)$ completed a $200 million convertible bond financing last Friday, with the funds to be used for increasing its Bitcoin holdings. The financing was arranged by Yorkville Advisors, with terms requiring KindlyMD to pledge Bitcoin equivalent to twice the principal as collateral, and allowing creditors to convert at an initial price of $2.80 per share.
The stock price of Bitcoin mining company TeraWulf doubled this month, while Google has committed $1.4 billion to expand its data center, potentially increasing its stake to 14%.
$TeraWulf (WULF.US)$ announced on Monday, $Alphabet-C (GOOG.US)$ Agreed to provide $1.4 billion in funding to support the expansion project of TeraWulf's Lake Mariner data center campus located in western New York. In return, warrants will be received, which, if exercised, could increase Google's ownership stake in TeraWulf to approximately 14%. Following this news, TeraWulf's stock price surged over 19% during U.S. trading hours, marking a cumulative increase of 107% this month.
U.S. Treasury Secretary: Stablecoins will expand the global channels for dollar usage and lead to a surge in demand for U.S. Treasury bonds.
U.S. Treasury Secretary Scott Bessent stated, "The implementation of the GENIUS Act is crucial to ensuring U.S. leadership in the digital asset space. Stablecoins will expand the global channels for using billions of dollars and lead to a surge in demand for U.S. Treasury securities." Since the passage of the GENIUS Act in July, the supply of yield-bearing stablecoins has surged. Data indicates that the biggest beneficiaries are USDe from Ethena and USDS from Sky, which can earn yields when staked within their respective protocols. According to DefiLlama data, since July 18, the circulating supply of USDe has increased by 70%, surpassing $10 billion, making its market capitalization the third largest among all stablecoins. During the same period, the circulating supply of USDS rose by 23%, approaching $4.81 billion, ranking fourth in market capitalization.
Ethereum ETFs surpass Bitcoin due to institutional fund inflows.
The inflow of Ethereum ETFs has surged, with the corporate investment scale attracted in the past six weeks exceeding the total of the previous 12 months. In July, Ethereum-related products clearly outperformed Bitcoin. The inflow of corporate funds has maintained this trend: large-scale buying on dips has propelled Ethereum into new market segments. BitMine's substantial investment has become a significant driving force in this process. Based on recent performance, Ethereum ETFs have gained widespread recognition. Last month, their scale briefly surpassed that of Bitcoin-related products and continued to drive institutional fund inflows, although Bitcoin ETFs still occupy a larger market share overall.
The U.S. Department of the Treasury is seeking public input to explore new methods for combating illegal activities involving digital assets.
After President Trump signed the GENIUS Stablecoin Act, the U.S. Treasury issued a notice on August 18, soliciting public opinions on how financial institutions can prevent illegal activities related to digital assets (such as money laundering). The GENIUS Act requires stablecoins to be fully backed by U.S. dollars or equivalent liquid assets and mandates annual audits for issuers with a market capitalization exceeding $50 billion, while also regulating offshore issuances. Treasury Secretary Scott Bessent stated that stablecoins will expand the global use of the dollar, enhance demand for U.S. Treasury securities, and benefit users, issuers, and the Treasury. The deadline for public comments is October 17. Some banking associations have expressed concerns regarding the weakening of restrictions on interest payments to issuers in the act, arguing that it may lead to stablecoins becoming tools for store of value and credit rather than merely payment instruments.
JPMorgan: Bitcoin network hash rate increased by 4% in the first two weeks of August.
$JPMorgan (JPM.US)$ According to the report, since the end of last month, the Bitcoin network's hash rate has increased by 4%, and the U.S.-listed mining companies tracked by the bank currently account for a record 33.6% of the global Bitcoin network. JPMorgan noted that following the announcement of the deal between TeraWulf and Fluidstack, operators with high-performance computing (HPC) businesses have performed exceptionally well.
Bitfinex Report: Bitcoin prices reached an all-time high last week but are currently consolidating due to sensitivity to macro market conditions.
The Bitfinex Alpha report indicates that Bitcoin surged to a historic high of $123,640 last week, but subsequently retraced sharply as higher-than-expected U.S. inflation data dampened risk appetite, highlighting the market's sensitivity to macro headwinds. BTC is currently consolidating between its historical high and a local range low. Until stronger catalysts such as dovish signals from the Federal Reserve or renewed ETF inflows emerge, price movements may remain range-bound. Meanwhile, Ethereum climbed from $1,386 in April to $4,783 last week. Without structural inflows, the bullish momentum of altcoins often proves difficult to sustain. Additionally, institutional funds continue to flow into leading cryptocurrencies such as BTC and ETH, placing the overall market at a critical inflection point.
The South Korean Financial Services Commission plans to submit a regulatory bill for stablecoins in October.
According to The Block, the South Korean Financial Services Commission plans to submit a stablecoin regulatory bill to the legislative body in October, covering issuance, collateral management, and risk control requirements. This bill will be included in the second phase of the digital asset legal framework. The four major banks in South Korea are expected to meet with Heath Tarbert, President of Circle, the issuer of USDC, next week to discuss stablecoin collaboration. Japan is also expected to approve the issuance of its first yen stablecoin in the fall.
The Law School of Renmin University is holding an advanced training course on the legal practices of virtual currencies, stablecoins, and RWA.
According to the official WeChat account of the Law School of Renmin University of China, an advanced seminar on the legal practices regarding the disposal of virtual currencies involved in cases, stablecoins, and RWA will be held from August 29 to 31, 2025. The seminar will systematically analyze the legal attributes of virtual currencies, regulatory frameworks, and disposal processes, covering types such as Bitcoin, Ethereum, and stablecoins, with a focus on judicial enforcement, compliance risk prevention, and case studies. The training fee is 9,800 yuan, with discounts available for alumni and group registrations. Participants include professionals from the judicial sector, corporate legal affairs, and researchers.
Opinion: Cryptocurrency treasury companies have developed through regulatory arbitrage, and future market demand will weaken.
Nate Geraci, President of The ETF Store, stated that cryptocurrency treasury companies primarily thrive on regulatory arbitrage. As regulatory barriers are being dismantled at an increasingly rapid pace, the market's demand and interest in cryptocurrency treasury companies will also diminish.
BitMine's cryptocurrency holdings exceed $6.612 billion, including 1.523 million ETH and 192 BTC.
$Bitmine Immersion Technologies (BMNR.US)$ It was announced that its cryptocurrency reserves have surpassed $6.612 billion, including 1,523,373 Ethereum (ETH) and 192 Bitcoin (BTC), with the ETH reserves increasing by $1.7 billion and an additional 373,000 coins compared to last week. BitMine is now the world's largest holder of Ethereum reserves and ranks as the second largest cryptocurrency reserve globally, second only to Strategy Inc (MSTR). The company's goal is to hold 5% of the total ETH supply and is supported by top institutional investors including ARK, Founders Fund, and Pantera. Additionally, BMNR stocks have an average daily trading volume of $6.4 billion, making it the 10th most liquid stock in the United States.
Analysis: BTC is expected to continue range-bound fluctuations until strong catalysts such as signals of easing from the Federal Reserve or inflows of ETF funds materialize.
According to Bitfinex Alpha, Bitcoin briefly touched a historical high of $123,640 last week before retreating by 5.4%, influenced by U.S. inflation data that led to a decrease in market risk appetite. Currently, the BTC price is consolidating between the historical high and the range low, and it is expected to continue fluctuating within this range until strong catalysts, such as signals of monetary easing from the Federal Reserve or ETF fund inflows, emerge. Ethereum has performed remarkably, rising from $1,386 in April to $4,783 last week, nearing its peak of $4,864 in 2021, strongly driving funds toward high-risk assets, while Bitcoin's dominance fell from 65% to 59% over the past two months. Despite this momentum attracting more speculative interest, the lack of structural fund inflows has exacerbated volatility in the altcoin market, leaving the overall market at a critical turning point. Furthermore, U.S. inflation data for July shows that service costs and prices of tariff-related goods continue to rise, with core inflation reaching a six-month high and the Producer Price Index (PPI) exceeding expectations, further squeezing corporate profit margins. This indicates that inflationary pressures remain, posing challenges for the Federal Reserve's policy path at the September meeting, and market expectations for rapid interest rate cuts may be overly optimistic.
Moonrock Capital's founder: If ETH can retrace to the range of $4,000 to $4,100 and rebound strongly, it will be a typical bullish signal.
Simon Dedic, founder of blockchain consulting and investment firm Moonrock Capital, tweeted that Ethereum's recent 10% pullback from its peak is a healthy adjustment. He noted that Ethereum has tripled in value over the past three months, and a retracement to the $4,000-$4,100 range followed by a strong rebound would be a typical bullish confirmation. He emphasized that the more frequently Bitcoin, Ethereum, and other crypto assets change hands during an upward trend, the more sustainable the rally will be. Dedic urged investors not to lose confidence due to minor fluctuations and firmly believes that the market is still in a bullish phase.
Volkswagen Singapore partners with FOMO Pay to support digital currency payments, allowing payments for vehicles and services using BTC, ETH, and stablecoins.
Volkswagen Singapore (VGS) announced on August 14 that it has partnered with payment institution FOMO Pay to launch digital currency payment services. Consumers can now use BTC, ETH, and stablecoins (such as USDT, USDC, etc.) to pay for vehicle and service fees. Each customer has a daily payment limit of SGD 4,500, with a cumulative limit of SGD 13,500. This initiative responds to the growing trend of digital asset adoption in Singapore, aiming to enhance payment speed, security, and global interoperability while reducing transaction costs.
Editor/Joe
