Now, on to the rest of this week’s update:

Every week, Amdax summarizes what’s happening in the crypto market for you. Want to dive deeper? Click on the links in this email for more insights.

This newsletter is a co-production with our partner, Bitcoin Alpha. 

Marktupdate

Stay informed in three steps:      

1. Bitcoin hits record high of 123,000 dollars
“The marktet stands still”, we wrote in last week’s Weekly. In the days that followed, bitcoin shot up and reached a new all-time high of 123,000 dollars. In euros, a record has not yet been reached, although bitcoin is above €100,000 for the first time since January. This recent price move appears to mark the beginning of a new upward trend.

2. No signs of overheating
Sentiment among crypto investors is becoming more optimistic. More traders are betting on a rising bitcoin price. We see this in the rising funding rates, which are payments between traders who speculate on price movements using borrowed money. These increase when most of the market positions for a rise. Still, they remain well below earlier peak levels. The market appears healthy: growing, but without euphoria.

3. Spot ETFs continue to see steady inflows
Bitcoin’s recent price increase goes hand in hand with continued inflows into spot ETFs. Since the beginning of July, over 3.4 billion dollars has flowed into US bitcoin funds, 2.2 billion of which came in just two days. Ether is also gaining ground. In the past week alone, nearly 1 billion dollars was allocated to ether ETFs. Interest in ether is currently growing even faster than in bitcoin. This is reflected in ether’s performance in both dollars and against bitcoin.

News Overview

Signal from the noise:

• Truth Social wants to reward paying users with its own token. Users of the “Patriot Package” are already collecting digital gems, which will soon be exchangeable for a utility token on the platform and its streaming service, Truth+. Trump’s media company is thereby expanding a crypto plan that previously included wallets and an ETF. There is also criticism. Users warn that Truth Social now risks becoming the very kind of “grifter” the platform originally set out to oppose.

• Ethereum has moved back above 3,000 dollars, with stronger fundamentals. Inflows into spot ETFs are rising, and some companies are transferring part of their reserves to ETH. The price is well above key averages watched by traders. Together, this suggests growing confidence among long-term investors. However, the rally is still early. Compared to bitcoin, ether still has a long way to go.

• Aave is the undisputed frontrunner in DeFi. In Q2, the platform grew by 52 percent to 25.4 billion dollars in total value locked (TVL). Aave now manages 48 percent of all DeFi loans and has absorbed nearly a quarter of the capital in the DeFi market. This growth is not only due to regular upgrades to its technology, such as the upcoming V4-upgrade, but also to trust. Investors are looking for safe, mature protocols. Aave’s message: “Next stop, 1 trillion dollars.”

• Fidelity does not describe Ethereum as a tech platform, but as a digital economy with ETH as “base money”. In a new report, the major asset manager compares Ethereum’s network growth and activity to a country’s GDP. Gas fees represent consumption, staking is investment, and the trading of tokens and cross-chain transactions represent exports. Just like real economies, it is Ethereum’s diverse use that makes the network resilient, writes Fidelity. ETH derives its value not from interest rates or policy, but from usage.
 

Amdax’s Take

Bitcoin’s breakout is both strong and convincing. For the first time in months, we are seeing a clear move above the previous high, supported by inflows into spot ETFs and growing market optimism. Remarkably, retail enthusiasm remains limited. Altcoins are lagging, and euphoria is still absent.

That makes this rally especially interesting. It appears to be driven by structural demand rather than excess. If this trend continues, a price target between 150,000 and 165,000 dollars for bitcoin comes within reach. In the coming weeks, we will see whether confidence extends further into the broader market.