Fed fuels hopes, Bitcoin bounces

August 22, 2025

In partnership with

 

Reading time: 5 minutes

From Italy to a Nasdaq Reservation

How do you follow record-setting success? Get stronger. Take Pacaso. Their real estate co-ownership tech set records in Paris and London in 2024. No surprise. Coldwell Banker says 40% of wealthy Americans plan to buy abroad within a year. So adding 10+ new international destinations, including three in Italy, is big. They even reserved the Nasdaq ticker PCSO.

Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.

Powell opens door to September rate cut, Bitcoin rebounds

Key points:

  • Fed Chair Jerome Powell signaled a possible September cut as risks to jobs rise.

  • Bitcoin jumped above $114K after the remarks, reversing a week of pressure.

News - At Jackson Hole on Friday, Federal Reserve Chair Jerome Powell struck a dovish tone, saying “downside risks to employment are rising,” and putting a September rate cut in play. Markets reacted quickly: Bitcoin rose about 2% to ~$114,200, U.S. stocks added more than 1%, the 10‑year yield slipped to 4.27%, the dollar index dipped ~0.5%, and gold gained 0.6%.

Heading into the speech, crypto had been on the back foot. BTC hit a record above $124,000 about a week ago when cut odds neared 100%, then slid nearly 10% as those odds fell to 69%. After Powell’s remarks, CME FedWatch showed chances rebounding to nearly 90%. Ether dropped roughly 12% into the event, then bounced ~8% afterward.

Volatility expectations - Options markets point to moderate swings, with models implying ~2% around the speech. Traders caution that a more balanced tone could pressure prices, reflected in stronger put demand. Deribit positioning highlights activity near the $110,000 and $120,000 strikes as key areas of interest.

ETF flows - Despite Friday’s bounce, spot Bitcoin ETFs posted about $1.17 billion in five‑day outflows, the longest streak in over four months.

XRP faces heavy selloff while Ripple bets on Japan stablecoin

Key points:

  • XRP dropped after a 470M token selloff, meeting resistance near $2.92.

  • SEC delays ETF decisions, adding to regulatory uncertainty.

  • Ripple deepens ties with SBI to launch RLUSD stablecoin in Japan by 2026.

News - XRP markets endured another volatile stretch this week as institutional liquidations drove 470 million tokens onto exchanges between August 21–22. The wave of selling triggered a sharp rejection at $2.92 and pushed the price as low as $2.80, with trading volume spiking across major venues. Analysts warn that a sustained break below $2.80 could accelerate losses toward $2.75.

The setback comes amid ongoing regulatory hurdles. The SEC postponed rulings on multiple XRP ETF applications, now expected in October. Meanwhile, XRP’s network ranked lowest in a recent blockchain security assessment, further weighing on sentiment. On-chain data also shows a split among investors: short- and mid-term holders have been buying the dip, while long-term holders continue to sell, adding to downside pressure.

Stablecoin pivot in Japan - Despite market weakness, Ripple is expanding internationally. The firm announced a new memorandum of understanding with longtime partner SBI Holdings to distribute Ripple USD (RLUSD) in Japan. Launch is targeted for the first quarter of 2026 under the country’s revised Payment Services Act. RLUSD, first issued in December 2024, is fully backed by U.S. dollar deposits, Treasuries, and cash equivalents, with monthly attestations to bolster compliance.

Why it matters - SBI executives framed the move as a milestone for Japan’s digital finance infrastructure, while Ripple said RLUSD aims to serve as a reliable bridge between traditional and decentralized finance. The partnership underscores Ripple’s pivot to stablecoins at a time when XRP’s own price trajectory remains uncertain.

Key points:

  • SharpLink Gaming launches a $1.5B stock repurchase program.

  • Firm holds 740K ETH worth over $3.1B, the second-largest corporate Ether treasury.

  • Buyback aims to boost ETH-per-share metric and investor confidence.

News - Ether treasury firm SharpLink Gaming has authorized a massive $1.5 billion stock buyback, positioning itself as one of the most aggressive corporate adopters of Ethereum. The Minneapolis-based company, chaired by Ethereum co-founder Joseph Lubin, said purchases will be made at management’s discretion depending on share price and market conditions.

Co-CEO Joseph Chalom explained that buying back stock when shares trade below the firm’s net asset value is accretive, increasing the ETH-per-share ratio. SharpLink, which currently holds about 740,800 ETH valued at $3.14 billion, has already benefited from significant unrealized gains as ether prices climbed this summer. Shares of SharpLink jumped more than 10% to $19.85 following the announcement.

Ether-first corporate strategy - SharpLink formally adopted an Ethereum-based treasury strategy earlier this year, naming Lubin as chairman in May. The firm stakes its ETH to generate yield, a strategy executives say supports both shareholder value and the broader Ethereum ecosystem. While SharpLink is the second-largest ether treasury holder, it trails BitMine, which controls 1.5 million ETH worth $6.47 billion.

Ethereum’s Wall Street momentum - The move comes amid growing institutional interest in Ethereum. Investment firms backed by Peter Thiel have seen large gains from Ethereum-focused companies like ETHZilla and BitMine. At the same time, Wall Street giants such as BlackRock and Franklin Templeton are running tokenized funds on Ethereum, underscoring the network’s expanding role in traditional finance.

China eyes Yuan stablecoin amid dollar dominance debate

Key points:

  • Beijing is weighing a yuan-backed stablecoin, with Hong Kong likely as the testing ground.

  • Experts doubt it can rival dollar-backed tokens, which make up nearly all stablecoin volume.

News - Reports from Reuters and the Financial Times suggest that China may move forward with a yuan-pegged stablecoin, marking a significant shift from its crypto crackdowns while it continues to expand its central bank digital currency (e-CNY).

Offshore focus - Analysts expect any such project to be launched offshore, particularly in Hong Kong, to avoid conflict with strict onshore capital controls. China’s dual currency system, the mainland yuan (CNY) and the offshore yuan (CNH), makes it unlikely that a stablecoin tied to the CNY would circulate freely. Instead, experts anticipate a CNH-based version that could be trialed in Hong Kong, which has become the hub for offshore yuan liquidity and recently rolled out its own stablecoin licensing regime.

Dollar dominance - 98% of stablecoins in circulation are dollar-based, giving the US a near-monopoly in crypto settlements. Patrick Tan of ChainArgos noted that without systemic reforms, the yuan lacks the trust and liquidity to compete with the dollar.

Mixed reception - Commentators and market observers expressed both optimism and skepticism. Supporters say a yuan stablecoin could provide a “clean money channel” and strengthen regional trade, especially through Hong Kong and Belt and Road markets. Critics, however, warn that Beijing’s control and surveillance could limit utility, with some suggesting ordinary citizens could bear the risks if the project fails.

Geopolitical stakes - Whether or not Beijing proceeds, the consideration itself shows that stablecoins are no longer just crypto infrastructure but part of the wider geopolitical struggle over the future of money.

Crypto scams uncovered

  • Interpol's Operation Serengeti 2.0 shut down a massive crypto investment scam in Zambia, arresting 15 individuals who defrauded over 65,000 victims of an estimated $300 million, while also dismantling 25 illegal mining centers in Angola and uncovering a potential human trafficking ring.

  • In India’s Gujarat state, two brothers were arrested for orchestrating a ₹16 crore (approx. $1.9 million) cryptocurrency scam, working as local agents for a Chinese cyber syndicate, facilitating cross-border fund transfers and laundering via crypto.

  • Tasmanian seniors lost an average of $165,000 via CATM scams, with some victims losing up to $750,000. Fraudsters used romance, investment, and tech-support tactics to manipulate victims into sending funds through cryptocurrency ATMs.

Top 3 coins of the day

Cronos (CRO)

Key points:

  • CRO climbed 3.46% over the past 24 hours to trade at $0.146.

  • The Madrid Ribbon stayed in green alignment, with RSI at 52 while volume improved on the latest green candle.

What you should know:

CRO extended its rebound today, supported by the Madrid Ribbon which stayed firmly green, reinforcing bullish undertones. The RSI at 52 reflected a neutral-to-positive bias, and buy volume ticked higher compared to recent sessions. Immediate resistance is near the $0.151 zone, while support rests around $0.141 on the Ribbon bands. Beyond the charts, optimism tied to regulatory narratives continued to play a role: the SEC’s delay on the Trump-linked “Crypto Blue Chip ETF,” which allots 5% to CRO, kept speculation alive ahead of the October 8 decision. Meanwhile, Cronos’ on-chain strength has improved, with stablecoin supply and DEX volumes hitting multi-month highs, alongside a TVL recovery above $700M. These ecosystem gains, coupled with ETF buzz, have helped sustain buyer interest, even as broader market sentiment cooled.

Key points:

  • HYPE advanced 2.48% in the past 24 hours to trade near $41.45.

  • The Supertrend stayed in buy territory, though the DMI showed a weak trend while volume improved on the green candle.

What you should know:

HYPE bounced higher today, holding above the Supertrend’s green support near $36.9. The DMI reflected muted trend strength, with ADX under 20, suggesting momentum remained fragile despite the gain. Volume picked up modestly, adding weight to the day’s move. Resistance sits near the mid-$44 area, while a fallback could retest support around $37. Beyond the technicals, fundamentals have helped underpin confidence: the protocol’s buyback program has removed nearly 29M HYPE since July, while liquid staking utility expanded after Valantis acquired stHYPE. Meanwhile, corporate treasuries allocated over $1.5B to HYPE in 2025, cementing its profile as a DeFi blue-chip. These structural supports helped offset weaker retail sentiment, keeping the mid-term bias constructive.

Ethena (ENA)

Key points:

  • ENA gained 1.35% in the last 24 hours to trade near $0.63.

  • Parabolic SAR dots stayed above the candles while the MACD histogram deepened in red with the signal line above the MACD, confirming bearish pressure.

What you should know:

ENA edged higher today despite lingering bearish signals. The Parabolic SAR stayed above the candles, and the MACD remained bearish with red bars growing and the signal line above the MACD line, reflecting stronger sell pressure. Volume declined over recent sessions, hinting at lighter sell pressure compared with last week’s pullback. Support sits at $0.60, while resistance is near $0.70. Off the charts, the foundation’s $260M buyback program has already absorbed around $150M worth of ENA, tightening supply. At the same time, Ethena’s USDe stablecoin doubled to $11.6B in supply after the GENIUS Act restricted regulated rivals, driving protocol revenue that supports ENA. While these structural drivers offered bullish backing, traders are also monitoring over $140M in token unlocks slated for late August, which may test near-term resilience.

Business news as it should be.

Join 4M+ professionals who start their day with Morning Brew—the free newsletter that makes business news quick, clear, and actually enjoyable.

Each morning, it breaks down the biggest stories in business, tech, and finance with a touch of wit to keep things smart and interesting.

How was today's newsletter?

Login or Subscribe to participate in polls.