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 reaches new all-time high in U.S. dollars
Ethereum hit a new all-time high of $4,882 on Friday, which it extended further to $4,950 on Sunday. The surge followed a speech by Fed Chair Powell and was boosted by continued inflows into ether ETFs. However, the enthusiasm didn’t last. Profit-taking and a correction pushed ether back down from its peak. The market wants to move higher but lacks conviction.

2. Bitcoin drops to its lowest level in seven weeks
Bitcoin failed to hold its $124,500 peak and fell back to $108,700, marking its lowest level since early July. The decline was driven by profit-taking and weakening momentum, while altcoins briefly outperformed. Inflows into bitcoin ETFs also slowed, signaling that investors are adopting a wait-and-see approach for now.

3. Fed Chair hints at rate cuts
At the Jackson Hole Symposium, Fed Chair Powell discussed the balance between fighting inflation and supporting employment. His softer tone, placing more emphasis on the labor market than inflation, was seen as a possible signal toward rate cuts. Still, the initial optimism quickly faded. Investors are now waiting mainly for new macroeconomic data in the coming weeks, which will be key for the Fed meeting in September.

News Overview

The key headlines from this week:

• China and Japan take steps with their own stablecoins.
  Beijing is, for the first time, exploring yuan stablecoins as a way to give the renminbi more international weight. This is striking, given that the People’s Republic had so far strongly focused on central bank digital currency. In Japan, the first yen stablecoin has been approved, fully backed by deposits and government bonds. Two Asian powerhouses are thus using the same technology to strengthen their national currencies.

• Tether brings in former Trump advisor Bo Hines.
  The former director of the White House Crypto Council becomes a strategic advisor to help the stablecoin giant gain more legitimacy in Washington. With the GENIUS Act recently introduced, Tether appears to be shifting course: from controversial challenger to a player seeking to comply with U.S. rules.

• BTCS introduces the first “bividend” in ether.
  Shareholders will receive up to $0.40 per share paid out in ETH, a first for a publicly traded company. The idea: ether generates a natural yield through staking that can be passed on, something impossible for bitcoin companies. This sets BTCS apart from bitcoin treasury firms like Strategy: while bitcoin only serves as a reserve, ether enables dividend-like rewards directly from protocol revenues.

• EU accelerates plans for a digital euro.
  After the U.S. GENIUS Act, Brussels fears that dollar stablecoins could displace the euro. For the first time, serious consideration is being given to using public blockchains, such as Ethereum or Solana, instead of a closed system. This could help the euro circulate more widely worldwide but also raises privacy concerns. Pressure from Washington is forcing Europe to move faster.

• Kanye West launches his own memecoin, YZY.
  Within a short time, the Solana-based token shot up to a $3 billion market cap, only to crash just as quickly. Ye had previously dismissed memecoins as scams but is now embracing them himself. The price collapse appeared fueled by concerns over insider profits. Investors should be cautious about the heightened risk of putting money into hype rather than a serious coin.

• MetaMask launches its own stablecoin, mUSD.
  The wallet with over 30 million users is introducing a dollar token together with Bridge, directly integrated into the app. Thanks to this native integration, mUSD could become the default currency within the popular wallet, with major implications for payments and DeFi use. Later, in partnership with MasterCard, the token could also be used for in-store payments.

Amdax’s Take

The new record high for ether shows there is structural demand, particularly through ETFs. Ethereum is increasingly seen not just as technology but as a full-fledged investment asset. As a result, it is attracting capital that previously flowed mainly into bitcoin.

At the same time, bitcoin fell to its lowest point since July. This demonstrates that investors remain cautious as long as there is no clarity on interest rate policy. Upcoming data on inflation and employment will determine whether there is room for rate cuts, and with that, for a broader rally.