Weekly Update: 29th of August
What happened between the 22nd and 29th of August?
- Jerome Powell signals dovish policy at Jackson Hole, encouraging crypto markets with expectations of interest rate cuts and improved liquidity conditions. Read more
- China develops a digital yuan stablecoin to rival USDC and USDT, aiming for geopolitical influence and innovation in digital currency systems. Read more
- Bitcoin exchange reserves fall to 6-year low, indicating rising institutional accumulation and scarcity-driven price dynamics amidst growing ETF inflows. Read more
- Trump Media announces $6.4B CRO strategy, integrating crypto into media platforms while signaling a political-financial hybrid approach. Read more
Powell signals potential rate cuts at Jackson Hole
During the Jackson Hole summit, Federal Reserve Chair Jerome Powell signaled potential monetary easing. Emphasizing that “over-tightening risks economic weakness,” markets interpreted this as a pivot toward a rate cut by Q4 2025. Bitcoin spiked above $116,000 following his remarks, despite a short-term pullback due to a large whale liquidation. Lower interest expectations, combined with rising inflows into crypto ETFs, create an increasingly bullish setup for digital assets.
China develops blockchain-based Yuan stablecoin
China is developing a blockchain-based stablecoin pegged to the digital yuan, led by ICBC and the Ministry of Finance. The initiative aims to counter the dominance of US dollar stablecoins such as USDC and USDT. The new yuan coin will integrate into the e-CNY system and be trialed in cross-border trade with Southeast Asian partners. This represents both a geopolitical hedge and a framework for CBDC innovation.
Bitcoin exchange reserves hit 6-Year low
According to Glassnode, Bitcoin holdings on centralized exchanges have dropped below 1.89 million BTC, the lowest since December 2018. This trend reflects increased self-custody and accumulation by crypto treasuries. A 12% increase in large wallets (1,000+ BTC) further supports this institutional accumulation thesis.
Trump Media launches $6.4B CRO strategy
Trump Media & Technology Group revealed a $6.4 billion crypto strategy involving $1 billion in CRO tokens, $420 million in cash, and a $5 billion credit facility. Structured via Crypto.com and Yorkville Advisors, the plan includes CRO integration into Truth Social and ambitions for a Bitcoin ETF. CRO surged ~30% on the news, but the news also sparked criticism due to Trump’s active involvement in the crypto market while being President.
In other digital assets news
- Crypto platform Gemini has obtained a MiCA license in Malta, allowing it to expand its services across Europe.
- The SEC has delayed its decision on a Solana spot ETF until October. New filings include an Injective ETF and Grayscale's request to convert its Avalanche Trust into an ETF.
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