Market highlights
- Bitcoin surged above $75,500 after the U.S. Treasury expanded long-dated bond buybacks.
- Solana rolled out its first speed upgrade since launch, reducing block times to 350ms.
- President Trump urged Congress to pass a "fair version" of CLARITY Act at D.C. meeting.
- CFTC said the agency has crypto regulation ready if lawmakers fail to pass the CLARITY Act.
- U.S. SEC proposed new crypto fundraising exemptions to foster U.S. crypto innovation.
- The U.S. OCC plans to finalise GENIUS Act stablecoin regulations by November.
Macro market overview
U.S. markets were volatile this week as a sharp sell-off in long-dated government bonds pushed the 30-year Treasury yield to over 5.3%, its highest level since 2007. On Wednesday, August 19, the U.S. Treasury unexpectedly announced it would double the size of liquidity-support buybacks for 10-to-30-year securities to at least US$4 billion per operation. The announcement initially pushed the 30-year yield around 10 basis points lower and supported equities, while also weighing on the U.S. dollar. However, yields resumed climbing on Thursday as concerns around the U.S. fiscal outlook and government debt above US$40 trillion persisted.
The bond market volatility came as minutes from the Federal Reserve's July meeting showed several policymakers had supported a rate hike, while many believed further tightening could be necessary if inflation remained above target. CME's FedWatch tool currently puts the likelihood of a rate hike at the Fed's September 16 meeting at 41%.
Geopolitical risk also remained elevated as U.S.-Iran tensions continued and President Donald Trump threatened sanctions against countries trading with Iran. Disruptions to shipping through the Strait of Hormuz continued to constrain energy supplies, helping Brent crude gain 6.4% for the week to US$94.39 and WTI rise over 5.6% to US$87.06.
For the week ahead, market participants will presumably be monitoring the U.S. core personal consumption expenditures (PCE) index, preliminary GDP for the second quarter, further developments in bond markets, and Fed Chair Kevin Warsh's speech at the Jackson Hole Symposium. Nvidia also delivers its Q2 earnings on Wednesday, August 26.
Weekly performance: S&P 500 -1.4%, Dow Jones -0.9%, Nasdaq -2.6%.
Looking ahead:
- U.S. core PCE index (July) - Wednesday, August 26
- U.S. preliminary GDP Q2 - Wednesday, August 26
- Federal Reserve Chair Kevin Warsh speaks at Jackson Hole – Friday, August 28
Crypto Market Performance
Market Cap: $2.66T (+20.5% 7D)
All crypto sectors saw sizeable gains this week as sentiment rapidly turned from fear to greed on developments in the U.S. Treasury's bond buyback program for 10- and 30-year notes. Bitcoin surged above $75,500, gaining 8.9% in 24 hours, triggering almost US$2.8 billion in short-bitcoin liquidations. Analysts cautioned the rally may be premature, arguing Treasury intervention sparked a short squeeze rather than improving fundamentals. The crypto fear and greed index is currently in "greed" at 80.
Past performance is not a reliable indicator of future results.
Bitcoin (BTC)
- Opened the week at US$62,832 and gained to a three-month high of US$79,461 on the U.S. Treasury's bond buyback announcement. Bitcoin declined slightly throughout the weekend and gained into Monday. It is now trading around US$77,750 (+22.4% 7D).
- BTC dominance ranged between 58.9% and 60.2% this week.
- Bitcoin investment products saw inflows of over US$1.9 billion.
Strategy swung from a US$13 billion unrealised bitcoin loss to a US$1.4 billion profit as BTC rebounded above $75,000. The company's massive bitcoin holdings benefited from the rally, while its stock climbed alongside crypto markets. Strategy remains the world's largest corporate bitcoin holder, owning more than 840,440 BTC.
Coldcard maker Coinkite released a security overhaul after a seed-generation flaw enabled the recent $130 million in bitcoin theft. Updated firmware requires users to contribute randomness when generating wallet seeds and strengthens transaction signing, USB handling and backups. Users with potentially affected seeds were advised to generate new ones and move funds.
In bitcoin buying (and selling) news:
- Strive bought 1,110 bitcoin worth US$87.5 million through issuing common and preferred stock. The firm now holds 21,356 BTC, worth US$1.7 billion.
- Nasdaq-listed Zhibao Technology acquired 2,380 Bitcoin worth US$154.7 million through a PIPE financing deal, funded entirely with BTC. The company plans to raise up to US$1 billion to accumulate digital assets to diversify reserves and strengthen its long-term financial position.
- Metaplanet will contribute 2,100 Bitcoin worth US$132.1 million, plus US$2.5 million cash, to Nasdaq-listed Super League Enterprise. Renamed Superplanet, the company will become a Metaplanet subsidiary, establishing its first U.S. operating foothold. Metaplanet will own 95.7% of Superplanet and use the two listed companies to expand its bitcoin strategy.
Past performance is not a reliable indicator of future results.
Ethereum (ETH)
- Opened the week at US$1,874 and gained on the Treasury's bond buyback news to a weekly high of US$2,546 on Friday, August 21. Ethereum declined into the new week, and is now trading around US$2,480 (+30% 7D).
- Ethereum dominance ranged between 10.6% and 11.8% this week.
- Ethereum-focused funds saw inflows of almost US$713 million.
Ledger patched an Ethereum transaction signing vulnerability before researchers publicly disclosed it. The flaw could have enabled malicious transactions under certain conditions, but Ledger says no users were affected. The company coordinated with researchers to deploy fixes before details emerged, reducing potential exploitation risks for hardware wallet users.
In Ethereum buying news:
- BitMine bought 32,447 ETH (US$81.2 million). The company now holds over 5.8 million ETH, worth US$14.6 billion, or around 4.8% of supply.
Past performance is not a reliable indicator of future results.
Altcoins
The altcoin season index is currently 38, which is bitcoin season.
DeFi domination
- Stacks gained 89.4%. The gains came on the announcement of the network's PoX-5 hardfork, which will enable bitcoin holders to earn roughly 3% annual yield by staking BTC without wrapping or bridging. Institutional partners, including Fireblocks, are supporting the self-custodial system following extensive testing and audits.
- Ethena gained 82.4%. The synthetic dollar protocol on the Ethereum network saw outsized gains due to its US$1 billion lending facility launched in partnership with FalconX. The facility deploys USDe backing into over collateralised institutional credit. The structure diversifies Ethena's yield sources while introducing traditional credit and counterparty risks.
- Aave gained 48.9%. The DeFi lending protocol gained on institutional adoption narratives, including a proposal to accept Neuberger Berman-backed tokenised credit as collateral. Its recent Chainlink CCIP integration, attractive valuation relative to total value locked, and broader rotation into DeFi provided additional support for Aave.
TRUMP card
- TRUMP gained 70.7%. The official meme coin of the president presumably gained on the broader crypto rally, this week's White House meeting with crypto and finance executives (more on that below), and speculation that the Official Trump team could be negotiating an acquisition.
Layer-one gains
- XRP gained 47.8% as the expanded U.S. Treasury bond buybacks boosted crypto assets. Whale XRP accumulation provided further support, although rising Binance leverage increases the risk of a sharp reversal.
- Solana gained 29.5%. The gains came as the broader crypto market rallied and on the network's first speed upgrade since launch, reducing block times from 400ms to 350ms via the Agave v4.2 client. The change is the first of four planned upgrades targeting 200ms block times, improving transaction confirmations and censorship resistance.
Cross-chain gains
- LayerZero gained 40%. The omnichain messaging protocol presumably gained on increased trading activity across crypto as the broader market rallied.
HYPEd up
- Hyperliquid gained 31.5% on the broader upward momentum across crypto and President Trump announcing that Commodity Futures and Trading Commission Chair Michael Selig is working to bring the network legally into the U.S., although no regulatory approval has been announced.
Crypto ETF News
Digital asset investment products saw inflows of over US$2.7 billion this week, presumably due to rising U.S. Government debt and the Treasury's bond buyback announcement and its potential impacts on the U.S. Dollar.
In altcoins, XRP, Solana and HYPE saw inflows of US$54.3 million, US$57.4 million, and US$9.5 million, respectively.
Franklin Templeton received U.S. Securities and Exchange Commission (SEC) staff relief allowing its conventional funds to invest in its blockchain-based OnChain U.S. Government Money Fund. The move could bring tokenised assets into exchange-traded funds and mutual funds, improving cash management through intraday trading, faster processing and potentially lower costs. Implementation could begin in the fourth quarter.
Past performance is not a reliable indicator of future results.
Other crypto news
- Ahead of agency-level crypto developments this week, President Trump held a White House meeting of crypto and finance executives and agency representatives. At the meeting, he urged Congress to pass a "fair version" of the CLARITY Act. The bill would define U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) authority over digital assets and is expected to return to the Senate in September, requiring bipartisan support to advance. President Trump also mentioned that the U.S. Government is considering buying "sizeable" amounts of bitcoin.
- CFTC Chair Michael Selig said the agency is preparing crypto regulations that could proceed without Congress if lawmakers fail to pass the CLARITY Act. At the CFTC's inaugural Innovation Advisory Committee meeting, Selig argued existing commodities laws provide sufficient authority, while stressing congressional legislation remains preferable for establishing durable rules governing digital asset markets and protecting consumers.
- The U.S. SEC proposed new exemptions allowing crypto companies to raise up to US$5 million over four years without full securities registration or US$75 million annually if financial statements and ongoing reporting is provided. Chair Paul Atkins said the changes aim to encourage U.S. crypto innovation while maintaining investor protections.
- The Office of the Comptroller of the Currency plans to finalise GENIUS Act stablecoin regulations by November, ahead of a January 2027 deadline. The rules cover reserves, redemptions, liquidity, risk management, audits and custody. Comptroller Jonathan Gould said issuer applications should begin processing in 2027, amid an eightfold increase in digital asset chartering activity.
- Standard Chartered and HSBC completed the first live cross-border tokenised deposit transaction on Swift's blockchain-based ledger. The system matched and netted obligations between the banks before settlement, demonstrating interoperability between regulated tokenised deposits and advancing 24/7 cross-border payments and liquidity management.
- Citi plans to launch institutional bitcoin custody later this year through its new Custody+ platform, allowing institutional clients to hold traditional securities and crypto within the same framework. The bank is expanding its digital asset infrastructure as Wall Street adoption accelerates, building on its existing 24/7 tokenised deposit transfer services.
Inside the Markets
July brought a cautious recovery across crypto. Bitcoin closed the month 7.4% higher and Ethereum gained 18.5% as spot ETF inflows returned following June's record outflows. A hawkish Fed hold, a 21% surge in oil and Strategy's largest-ever bitcoin sale kept conviction in check.
In this month's Inside the Markets, we unpack whether July's institutional bid can hold — Ethereum's 2.5 million ETH validator entry queue, bitcoin's year-to-date ROI against previous midterm cycles, and the August catalysts from FOMC minutes to the CLARITY Act.
from Caleb & Brown Cryptocurrency Brokerage.
