Ether rises towards all-time high

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. 

Market update

Stay informed in three steps:      

1. Ether and Bitcoin approach record highs
The price of ether rose this week to around $4,700, just a few percent away from the all-time high of $4,870. Bitcoin followed suit, moving toward $122,000 and nearing its record of $123,000. On a weekly basis, ether clearly outperformed bitcoin. The rise is accompanied by a slight decline in bitcoin dominance, caused by ether’s strong performance. So far, the rally in the broader altcoin market remains limited to a small number of crypto assets.

2. U.S. ether funds post record inflows
After a dip earlier this month, the nine U.S. spot-ether ETFs once again attracted significant capital. With $1.02 billion in inflows on August 11 and $524 million on August 12, two of the best days since launch were recorded. Back in July, a record week of $2.18 billion was already achieved. The strong inflows confirm the high level of interest in ether among traditional and institutional investors.

3. Inflation figures increase chances of rate cut
The U.S. Consumer Price Index (CPI) for July rose 2.7 percent year-on-year, while core inflation excluding food and energy came in at 3.1 percent. Both figures were in line with expectations and show no new acceleration. This keeps the door open for a rate cut in September. Investors now estimate the probability at around 90 percent. Lower interest rates make risk-bearing investments more attractive and could draw additional capital into the crypto market.

News Overview

The key headlines from this week:

• Harvard and Brown invest in BlackRock’s bitcoin ETF IBIT. Harvard, with $117 million, is the 29th largest shareholder in the fund, while Brown has taken a position worth over $13 million. According to ETF analyst Eric Balchunas, university endowments are notoriously difficult to convince. Their investments are small compared to their total assets, but it marks a breakthrough for a traditionally anti-ETF stronghold.
• SEC exempts liquid staking from securities regulations. As long as providers do not promise returns and act only in an administrative capacity, they have nothing to fear from the SEC. This clarity removes a major legal threat to DeFi and is a boost for protocols like Lido and Jito. In recent days, the prices of tokens linked to such protocols have risen sharply.
• The case between the SEC and Ripple is officially over. Both parties have withdrawn their appeals, leaving the 2023 ruling in place: only the sale of XRP to institutional participants falls under U.S. securities law. For violating these rules, Ripple will pay a $125 million fine, finally closing this chapter after years of litigation.
• Regulator CFTC launches ‘crypto sprint’. The regulator will immediately start implementing recommendations from the President’s Working Group on Digital Asset Markets report. The goal: to fulfill Trump’s vision and make the U.S. the world’s crypto capital. Together with the SEC, the CFTC is working on Project Crypto, focusing on 24/7 trading, perpetuals, and clearer rules for innovation.
• BitMine becomes largest public holder of Ethereum. The U.S.-listed company, specializing in crypto mining and staking, has increased its ether holdings by 316,000 tokens in one week to over 1.15 million ETH, worth approximately $4.96 billion. The purchase is part of its strategy to own 5% of the total supply. The stock rose 25% on the news and another 9.5% in pre-market trading.

Amdax’s Take

Market sentiment in the crypto space shifted this week from cautious to optimistic. Ether drew attention with clear outperformance, fueled by strong inflows into U.S. spot ETFs. The rest of the altcoin market lagged behind. For now, the current momentum remains centered around ether. On the macroeconomic front, little changed: inflation figures brought no new surprises, and the market still expects a rate cut in September. In the coming weeks, the focus will be on whether ether can break its all-time high and whether ETF inflows will continue.