Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Mantle, rising 53.02%.
- Fundstrat co-founder Tom Lee predicts that Ethereum may eventually overtake Bitcoin due to its broader use cases, particularly on Wall Street. In an appearance on the Bankless podcast on August 6, Lee suggested Ethereum could deliver a 100x return and potentially surpass Bitcoin’s market cap, driven by accelerating institutional adoption and Ethereum’s central role in blockchain infrastructure, according to Bloomberg.
- President Donald Trump is expected to sign an executive order allowing private equity, real estate, cryptocurrency, and other alternative assets to be included in 401(k) retirement plans. The order will direct the Labor Department to reevaluate current guidance on alternative investments and clarify the government's stance on fiduciary responsibilities, Bloomberg reports.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Monero, down 9.92%.
- China has instructed local brokers and other organizations to stop publishing research or holding seminars that promote stablecoins, in an effort to rein in the asset class and prevent financial instability. Regulators are concerned that stablecoins could be exploited as a tool for fraudulent activity in mainland China, according to Bloomberg.
- Michael Novogratz believes the rush to create companies that hold cryptocurrencies on their balance sheets has likely peaked. He expects existing crypto treasury companies—such as those holding Ethereum—to continue expanding, while new entrants may face greater difficulty gaining traction, Bloomberg reports.
Opportunities
- The Winklevoss twins have invested in American Bitcoin Corp, a crypto-mining venture linked to Eric Trump and Donald Trump Jr. The investment was made through a private placement described as “oversubscribed” by Asher Genoot, and the twins used Bitcoin to fund their investment, Bloomberg reports.
- Nomura’s crypto division has received regulatory approval in Dubai to offer institutional over-the-counter crypto options, expanding the UAE’s presence in global digital derivatives. Laser Digital, the digital asset subsidiary of Japan’s investment bank Nomura, has become the first company licensed under Dubai’s Virtual Asset Regulatory Authority, according to Bloomberg.
- WhiteFiber, an AI infrastructure firm, raised $159.4 million in its IPO, pricing shares at the top of the marketed range. The subsidiary of crypto treasury firm Bit Digital sold 9.4 million shares on Wednesday at $17 each, after marketing them between $15 and $17, Bloomberg writes.
Threats
- Roman Storm has been convicted. The U.S. Department of Justice stated he knowingly operated a crypto mixer that moved over $1 billion in criminal funds, including money from cyberattacks linked to North Korea, according to Bloomberg.
- Altcoins are notoriously volatile, increasing the risk of a vicious cycle of forced selling and plunging prices. An index of smaller tokens has already experienced three cycles of rising or falling more than 55% this year and is down about 15% since hitting a five-month high on July 22, Bloomberg reports.
- CZ asked a bankruptcy court to dismiss claims against him from an FTX trust seeking to claw back $1.76 billion. CZ argued that the trust and FTX Digital Markets cannot allege facts placing him “at home” under Delaware’s jurisdiction because he is a resident of the UAE. Zhao stated that the trust and FTX Digital Markets nonsensically blame him and Binance for SBF’s pervasive malfeasance and the collapse of the crypto exchange, according to Bloomberg.
