Hey, traders! 👋
It’s been an extremely bullish week for the crypto market, but what went down behind the charts? Let’s dive into the key moments in this week’s digest 👇
quick weekly news
The US ‘won’t buy’ more Bitcoin, says Treasury Secretary
The U.S. Treasury has confirmed that its strategic Bitcoin reserve will continue to grow, but only through asset confiscations not market purchases. Treasury Secretary Scott Bessent stated that the reserve, created to modernize U.S. financial strategy, will not involve buying additional Bitcoin, sparking criticism from crypto advocates who expected an active accumulation policy.
The announcement comes amid uncertainty over the actual size of the reserve. While official trackers suggest the government controls over 198,000 $BTC, worth about $23B, estimates have varied widely, and no full audit has been conducted. Senator Cynthia Lummis has warned that holdings could be far lower, calling any shortfall a “strategic blunder” in the global Bitcoin race.
The U.S. reserve is composed entirely of Bitcoin seized in law enforcement actions, including major hauls from the Silk Road case, the Bitfinex hack recovery, and other cybercrime busts. Notably, Bessent also said the government will halt future Bitcoin sales, marking a shift from the past practice when seized BTC was routinely auctioned off.
Ethereum ETF flows blow past post-merge token issuance
Spot Ethereum exchange-traded funds (ETFs) are experiencing record inflows in the U.S., driving renewed bullish sentiment as ETH’s price approaches its ATH. In August alone, these ETFs have attracted $2.3B, equivalent to 500,000 $ETH, surpassing the 450,000 $ETH issued by the network since its 2022 “Merge” upgrade. The products also notched their strongest single day on record, pulling in $1B across nine funds in just one Monday session.
While Ethereum treasury firms like BitMine Immersion Technologies and SharpLink Gaming have emerged as a growing source of demand, analysts at Standard Chartered note that ETFs have outpaced them in recent months, holding 3.8% of circulating ETH compared to the treasuries’ 1.9%.
“We project that the stablecoin sector will grow […], which would have a significant direct impact on fees.”
Still, with treasury companies purchasing 2.3M $ETH since June, Standard Chartered sees potential for their holdings to reach 10% of the total supply.
Ethereum’s supply has grown just 0.13% since the merge, thanks to staking rewards and annual fee burns averaging 683,000 $ETH. Analysts also expect stablecoin adoption to accelerate following new U.S. legislation, with Ethereum being home to more than half of all stablecoins, positioned to capture significant fee revenue.
Memecoin market surges to $82B as Bitcoin hits new record
The memecoin market has jumped over 14% in the past week to nearly $82B, according to CoinGecko, boosted by easing geopolitical tensions, favorable crypto legislation, and Bitcoin’s steady performance. Analysts point to rising risk appetite as investors shift capital into speculative assets.
Major drivers include high-profile launches, like Trump-themed tokens, and significant fundraises, such as Pump.fun’s $600M ICO. New contenders like LetsBonk and Bags are also gaining traction alongside established names.
Macroeconomic optimism, expectations of a Fed rate cut in September, and record U.S. equity highs are adding fuel to the rally. Trading data suggests the move could be in its early stages, with Dogecoin futures volume doubling in July. However, the surge remains concentrated in large-cap memecoins, and sentiment-driven volatility could trigger sharp pullbacks if Bitcoin weakens.
BtcTurk halts withdrawals amid suspected $48M crypto hack
Turkish crypto exchange BtcTurk has suspended crypto deposits and withdrawals after unusual activity in its hot wallets, amid reports of a potential $48M exploit. Trading and fiat deposits/withdrawals remain operational.
Cybersecurity firm Cyvers flagged suspicious transactions across multiple networks, including ETH, AVAX, ARB, BASE, OP, MANTLE, and MATIC. The attacker allegedly moved funds to two addresses and began swapping them, mainly for Ether. Estimates of losses vary, with Lookonchain citing $23M and CertiK suggesting over $50M.
BtcTurk stated that most assets are stored in cold wallets and are safe. Authorities have been notified, and an investigation is ongoing. This incident follows a June 2024 breach in which $55M was stolen from hot wallets.
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top crypto meme of the week
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