🏆 Bitcoin & Ethereum break records

Last week, the crypto market experienced its strongest week to date, as Bitcoin and Ethereum set new records in terms of both prices and ETF trading volumes.

According to ETF analyst Eric Balchunas, it was the "best week ever" for spot ETFs. Ethereum in particular stood out: with a daily inflow of $1.01 billion and a total of $3 billion in the first two weeks of August alone, the funds made up for eleven months of inactivity in a short space of time.

Bitcoin also broke through to a new all-time high of over $124,000. The rise was driven by massive ETF inflows and a more favorable macroeconomic environment: US inflation stagnated at 2.7%, while the interest rate cut expectation for September rose to almost 94% according to FedWatch. The prospect of cheaper liquidity is seen as a driver for riskier assets, with a direct impact on cryptocurrencies.

In the global financial rankings, Bitcoin temporarily overtook Google to become the fifth-largest asset worldwide.

For developer Udi Wertheimer, the short-term price potential is $175,000, while investor Jason Pizzino predicts as much as $340,000 - assuming that Bitcoin repeats the historic gains of previous cycles. Ethereum, meanwhile, is approaching its all-time high from 2021 and is only just 2% below it.

The market is now more characterized by capital flows and macroeconomic expectations than pure speculation. This brings Bitcoin and Ethereum closer to the financial mainstream, but the greater the market capitalization, the greater the pressure to prove fundamental values.

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🌅 Ethereum on the rise

Ethereum has seen a strong price performance in recent weeks, which was largely driven by institutional capital flows. Spot ETFs on ETH generated total inflows of over $3.7 billion before the first outflows of $59 million occurred.

Observers see the ETF development as an indicator of institutional interest. Analysts such as Jake Kennis and Langerius expect the all-time high to be exceeded if momentum continues. The rally drove the ETH price to $4,448 in the short term, only around 2% below the 2021 high.

At the same time, the institutional race for Ethereum corporate treasuries is accelerating: BitMine Immersion Technology, the largest corporate holder of Ether, plans to issue $24.5 billion worth of shares in an offering “at-the-market” to acquire more ETH.

SharpLink is also strengthening its position and recently raised $389 million through a capital increase - funds which, according to the company, will primarily be used to build up its ETH reserves. Together, the two companies underline the trend of growing corporate balance sheets with Ether holdings in the billions, while parallel inflows from institutional investors are additionally fueling market sentiment.

At the same time, Ethereum staking withdrawal requests have also reached a new record high of 877,106 ETH. Probably fueled by the price increase, those requests mainly come from the three largest liquid staking platforms. Lido is at the top with around 285,000 ETH in the payout queue, followed by EthFi with 134,000 ETH and Coinbase with 113,000 ETH.

At first glance, this development could indicate large-scale profit-taking. But according to Ignas, the selling pressure is being mitigated by recent buying by institutional players, particularly Ether treasury companies and spot ETH ETFs, which continue to see inflows.

The development is taking place against the backdrop of an emerging altcoin season: Bitcoin dominance is declining, while the first capital rotations towards Ethereum and other altcoins are becoming apparent. The Altcoin Season Index rose from 25 to 53 points, although a clear trend catalyst like ICOs or NFTs is still missing. Institutional investors also appear to be making initial shifts, fueled by the expectation of falling interest rates in the US.

Meanwhile, Ethereum is positioning itself technologically with the planned Fusaka upgrade, which is due to go live in November 2025. The hard fork comprises 11 EIPs (Ethereum Improvement Proposals), including things like scaling (PeerDAS), spam resistance, more efficient gas models and cryptographic enhancements.

Particularly noteworthy is the planned increase in the block gas limit to up to 150 million, which could significantly increase transaction capacity in the medium term.

The upgrade cycle follows a six-month cycle, with Fusaka focusing specifically on backend stability, without jeopardizing the compatibility of existing smart contracts.

Ethereum currently presents itself as a technologically focused asset with a growing institutional tailwind. However, it remains unclear whether the foundations have been laid for a sustainable breakout from the shadow of Bitcoin. Capital flows into ETFs and treasury companies signal confidence, but without a new narrative driving force there is a risk that the upswing in the altcoin sector will turn out to be a mere temporary rotation.

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🤸‍♀️ Bitcoin's balancing act

Bitcoin is currently caught between institutional enthusiasm and growing warnings of overheating. With the recent purchase of 155 BTC, Strategy increased its total holdings to over 600,000 BTC.

On the occasion of the fifth anniversary of its Bitcoin strategy, CEO Michael Saylor reaffirmed his conviction with these words:

While Strategy continues to expand its position, there are growing signs of an impending altcoin rotation. Analysts such as Ted Pillows and Coinbase see the declining Bitcoin dominance, which is down by around 10% since May, as a typical pattern of past cycles. According to TradingView, BTC's market share is now “only” 59%, which opens up the scope for a temporary redistribution towards other cryptocurrencies.

At the same time, cautionary voices are on the rise: Galaxy Digital CEO Mike Novogratz warns that the market is overheating. He is particularly critical of the theory that Bitcoin must be bought "by force", a narrative spread by influencers like Udi Wertheimer. The latter speaks of a "forced demand" driven by ETFs, treasury firms and regulatory frameworks that are increasingly prompting companies to turn to BTC as their primary reserve asset.

"I would prefer a lower Bitcoin price in a more stable US economy," said Novogratz.

Pantera Capital demonstrated remarkable accuracy with a forecast from 2022. At that time, the fund expected Bitcoin to be trading at around $117,482 on August 11 2025, at a time when the cryptocurrency was around $16,000. Three years later, BTC actually closed at over $119,000, an increase of more than 660% since that low point. This underpins Pantera's thesis that Bitcoin's four-year cycles, characterized by halving, subsequent rally, cycle peak and correction, continue to provide reliable guidance, even if growing institutional participation is increasingly casting doubt on this pattern.

The Norwegian sovereign wealth fund Government Pension Fund Global, the largest in the world at $1.7 trillion, has also significantly increased its indirect Bitcoin exposure. According to K33 Research, it increased by 192% in 2025 and now comprises around 7,161 BTC, held via investments in Bitcoin treasury companies like Strategy, Metaplanet and Coinbase. In particular, the fund increased its holdings in Strategy (+133% compared to 2024) and Coinbase (+96%). This follows a growing trend among sovereign wealth funds to participate in Bitcoin adoption via listed crypto companies and treasuries.

The Bitcoin market is currently caught between two forces: growing institutional legitimacy on the one hand and speculative overheating on the other. Although ETFs and corporate reserves underpin its long-term relevance, extreme price targets and one-sided narratives threaten to undermine the confidence of private investors. The decisive factor remains whether Bitcoin can maintain its role as the dominant store of value even in the context of growing altcoin dynamics.

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🇯🇵 Japan's stablecoin leap

Japan's Financial Services Agency (FSA) is planning to approve the first yen stablecoin this fall. It will be launched by the fintech company JPYC, which will be registered as a money transfer service and issue tokens worth 1:1 to the yen, backed by bank deposits and Japanese government bonds.

Observers expect that JPYC could not only modernize payment transactions, but also boost demand for Japanese government bonds, similar to how US stablecoin issuers have become significant buyers of American Treasuries.

While the stablecoin infrastructure is being professionalized in developed economies, the opposite effect can be seen in emerging markets: stablecoins serve as an alternative to unstable national currencies, but are often unclear or even undesirable from a regulatory perspective. The geopolitical dimension is further intensified by the growing influence of the USDT and USDC, the two leading dollar-pegged tokens that effectively act as "digital dollars". In times of growing global tensions, their role is being viewed increasingly critically.

Stablecoins are on the cusp of technical innovation and geopolitical relevance. While they are maturing as infrastructure tools for payments and DeFi applications in the West, they often function as informal dollarization in the Global South. The divergence of regulatory stances, from Japan's clear licensing to political bans in other regions, makes it clear that stablecoins will be shaped not only economically but also politically in the future.

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