Bitcoin Hits Record High Before Inflation Data Triggers Pullback

Market Highlights

• Bitcoin Sets New All-Time High Before Inflation Shock: BTC climbed to US$124,533 midweek, but hotter-than-expected US PPI data triggered a pullback and left it down on the week.
• Ethereum Extends Outperformance: ETH rallied to US$4,775, briefly setting a new AUD record, and closed the week up +5.29% despite macro headwinds.
• ETF Flows Favour ETH Over BTC Again: Spot ETH ETFs attracted US$2.25 billion in net inflows, more than quadrupling BTC’s US$547 million, marking a third straight week of dominance.
• ADA Surges on Grayscale ETF Plans: ADA jumped nearly 20% to a five-month high after Grayscale revealed plans for a spot ADA ETF, boosting institutional interest.
• OKB Skyrockets on Historic Token Burn: OKX permanently removed more than 279 million OKB (worth US$26 billion), cutting supply nearly in half and driving a 152% weekly gain

Market Overview

Crypto markets delivered a rollercoaster week, marked by record highs, sharp reversals, and renewed macro headwinds. Bitcoin (BTC) climbed to a fresh all-time high of US$124,533 on Wednesday, while Ethereum (ETH) came within touching distance of its own record, briefly setting a new peak in AUD terms.

However, momentum stalled abruptly on Thursday after US Producer Price Index (PPI) data came in far hotter than expected. Producer prices rose 0.9% in July, the largest monthly increase since May 2022 and well above forecasts of 0.2%. The result reduced hopes of near-term rate cuts and triggered a pullback across risk assets.

The week highlighted the delicate balance in crypto markets, with powerful structural drivers such as rising ETF inflows and corporate treasury accumulation competing against persistent macroeconomic pressures from sticky inflation and shifting interest rate expectations.

Bitcoin (BTC)

It was a volatile week for Bitcoin (BTC). After a choppy start, a midweek rally on Wednesday pushed BTC past its July record to set a new all-time high of US$124,533. However, the move was short-lived as hotter-than-expected PPI data on Thursday triggered a broad risk-off reaction. Despite setting a new record, BTC ended the week down –1.30% as traders digested the inflation surprise and comments from US Treasury Secretary Scott Bessent, who ruled out near-term government purchases to expand America’s strategic Bitcoin reserve.

ETF Inflows: 

US spot Bitcoin ETFs recorded strong activity, doubling last week’s inflows with more than US$547 million in net inflows, according to SoSoValue. The four-day run of inflows helped lift Bitcoin’s price toward new highs, though Friday’s outflows weighed on momentum and added to the pullback.

Corporate Treasury Demand: 

Healthcare company KindlyMD completed its merger with Nakamoto Holdings to launch NAKA, an institutional-grade Bitcoin treasury vehicle. Backed by US$540 million in PIPE financing and a pending US$200 million convertible note, NAKA has set an ambitious target of accumulating up to 1 million BTC.

Ethereum (ETH)

Ethereum (ETH) came within touching distance of its USD all-time high this week. A midweek surge on Wednesday lifted ETH to US$4,775, briefly setting a new AUD record at AU$7,286. However, momentum faded after Thursday’s PPI data halted risk appetite, and ETH retraced in the days that followed. Even so, it closed the week up +5.29%, extending its recent streak of outperforming Bitcoin.

Notably, the rally coincides with unprecedented unstaking demand. Ethereum’s validator exit queue climbed to 855,158 ETH (around US$3.7 billion) last week, raising concerns about potential sell pressure as stakers prepare to exit. With this dynamic unfolding alongside strong ETF inflows and growing institutional demand, the week ahead could prove pivotal for ETH’s momentum.

ETF Inflows: 

US spot ETH ETFs continued to outpace BTC products for a third consecutive week, recording US$2.25 billion in net inflows, according to SoSoValue. The strong demand helped push Ethereum’s price higher and reinforced its recent outperformance against Bitcoin.

Corporate Treasury Demand: 

Institutional demand for ETH continues to accelerate. BitMine Immersion Technology added 106,485 ETH (worth approximately US$470.5 million) this week, lifting its total holdings to 1.29 million ETH, valued at around US$5.75 billion. Meanwhile, SharpLink Gaming revealed plans to raise US$400 million through a direct offering with institutional investors, with proceeds earmarked for further Ether accumulation. 

Altcoins

Large-cap altcoins saw mixed results this week, with ADA and BNB leading the way while others struggled to keep pace. Cardano (ADA) was the standout performer, rallying +19.93% to hit a five-month high following news that Grayscale was moving forward with plans to launch a spot ADA ETF. Binance Token (BNB) also extended its momentum, climbing +6.02% and continuing its surge into price discovery after breaking past its previous all-time high.

Elsewhere, Solana (SOL) and Tron (TRX) recorded modest gains of +4.56% and +4.36% respectively, reflecting steady resilience despite a choppier market backdrop. By contrast, Dogecoin (DOGE) barely moved, edging up just +0.32%, even as reports surfaced that Grayscale is considering a spot DOGE ETF. XRP (XRP) was the weakest among the top caps, slipping -3.10% as enthusiasm from prior weeks’ gains began to wane.

Biggest Gainers:

• OKB (OKB) +151.99%: OKB skyrocketed after OKX executed a record-breaking token burn, permanently removing more than 279 million OKB (worth approximately US$26 billion) from circulation. The move cut total supply by nearly half to around 21 million tokens, creating a powerful supply shock.
• Skale (SKL) +75.80%: SKL rallied strongly following the launch of ‘It Remains’, a transmedia storytelling project built on the Skale Network. Combining novels, AR/VR games, NFTs, and DAO governance, the initiative highlighted Skale’s scaling capabilities for Ethereum-based applications and drove renewed adoption interest.
• Chintai (CHEX) +52.75%: CHEX surged on speculation of a potential partnership with Chainlink. While no official confirmation has been made, the rumours were enough to fuel bullish sentiment and attract speculative flows into the token.
• Venice (VVV) +32.01%: VVV gained momentum after announcing its upcoming upgrade introducing tokenised DIEM. The update is designed to enhance token utility by reducing VVV emissions and allowing stakers to mint DIEM tokens for predictable API capacity, which can also be sold on secondary markets.

Biggest Losers:

• 0x0 Ai (0X0) -25.54%: The AI-themed meme token dropped sharply as momentum behind the broader AI narrative continues to fade. With traders rotating out of speculative AI plays and volumes drying up, 0X0 has struggled to retain attention, leading to sustained sell pressure.
• Mog Coin (MOG) -24.18%: A favourite in recent meme rallies, MOG posted another steep loss. After rallying in recent months, the token has faced persistent sell pressure, with this week’s move likely tied to fading retail interest and macro-driven de-risking.
• SPX6900 (SPX) -21.71%: The parody token fell in tandem with the meme sector’s overall decline. Despite strong social engagement, SPX has seen declining volumes and appears to be losing traction as speculative sentiment cools.

ICYMI - The Week in Crypto News

Here are a few key stories you may have missed:

• Fed Ends Crypto Oversight Program: The US Federal Reserve has terminated its special supervisory program for banks involved in crypto. This move could ease regulatory burdens for institutions offering services like custody and stablecoin issuance.
• NAKA: New US$700M+ Bitcoin TreasuryCo Emerges: KindlyMD has merged with Nakamoto Holdings to form NAKA, an institutional-grade Bitcoin treasury company. Backed by US$540 million in PIPE financing and a pending US$200 million convertible note, NAKA aims to acquire up to 1 million BTC.
• Circle to Launch Arc: A New Layer-1 Blockchain: Circle announced plans to launch Arc, a stablecoin-focused, EVM-compatible Layer-1 blockchain designed for enterprise-grade financial applications including payments, FX, and capital markets.
• Stripe Developing Blockchain ‘Tempo’ with Paradigm: Stripe is reportedly building a new payments-focused blockchain, Tempo, in partnership with crypto venture firm Paradigm, marking its most ambitious move into Web3 to date.
• MetaMask Stablecoin Proposal Surfaces Then Disappears: An Aave governance proposal revealed plans for MetaMask to launch a stablecoin called mmUSD, with Stripe integration. The proposal was quickly deleted, leaving speculation about its status.
• Thiel-Backed ETHZilla Revealed in SEC Filing: A recent SEC filing revealed that Peter Thiel has acquired a 7.5% stake in 180 Life Sciences, a biotech firm rebranding to “ETHZilla” and pivoting to Ethereum accumulation. The company plans to raise US$425 million via a PIPE offering to build a significant ETH treasury.
• LayerZero Proposes US$110M Stargate Acquisition: The LayerZero Foundation has offered to acquire cross-chain liquidity protocol Stargate for US$110 million. The deal would involve swapping Stargate’s STG tokens for LayerZero’s ZRO token.

Looking Forward - The Week Ahead

Key upcoming events to watch:

• FOMC July Meeting Minutes (20 August): The US Federal Reserve will release minutes from its July meeting, offering insights into interest rate policy and economic outlook. Any shift in tone may influence crypto markets via liquidity and risk sentiment.
• Brazil Bitcoin Reserve Hearing (20 August): Brazil’s House of Representatives will debate a bill proposing the establishment of a national Bitcoin reserve, potentially signalling growing institutional interest in BTC.
• KAITO Token Unlock (20 August): Approximately US$25.92 million worth of KAITO tokens (8.82% of circulating supply) will be unlocked, potentially introducing sell pressure
• Venice (VVV) Protocol Upgrade (20 August): Venice.ai will launch tokenised DIEM, enabling VVV stakers to mint DIEM tokens in exchange for guaranteed API access. DIEM will also be tradable on secondary markets, enhancing protocol utility.
• Jackson Hole Economic Symposium (22 August): US Fed Chair Jerome Powell is scheduled to speak at the annual Jackson Hole gathering. Markets will closely watch for clues on future monetary policy direction, with potential implications for crypto volatility.

Thanks for reading this week’s Market Pulse. We’ll be back next week with more insights from the crypto markets!