The first week of August brought a mix of consolidation, resilience, and pivotal policy changes to the crypto market. Bitcoin maintained a tight range after July’s record monthly close, Ethereum broke from its historic August weakness, and stablecoins secured a major regulatory win in the U.S. Meanwhile, DeFi and altcoin markets saw both growth and sharp volatility as traders repositioned amid shifting macro forces.
Bitcoin traded in a tight range this week, holding between $113,000 and $116,000 after closing July at a record monthly high near $115,750. Earlier attempts to break $120,000 in July lost momentum as ETF outflows compressed BTC basis from about 9% to 6%, signaling reduced long positioning and cooling sentiment. Analysts suggest the market is coiling for its next major move, a breakout above $120,000 could open the door to $140,000, while a drop below support may lead to a pullback toward $110,000–$112,000. Broader caution persists amid potential new U.S. tariffs, keeping volatility relatively muted.
Ethereum outperformed seasonal norms in early August, rebounding nearly 8% from last week’s lows to consolidate near $3,692 by Thursday. Institutional participation remains strong despite $600 million in Ethereum ETF outflows over two days, which added mild price pressure. On-chain activity is robust, with daily transactions near record highs at 1.87 million, fueled largely by DeFi and stablecoin use. Key levels to watch are support at $3,583 and resistance at $3,727; a breakout could drive further upside, while failure may prompt a retest of lower supports.
Stablecoins saw a milestone with the July 18 passage of the GENIUS Act, allowing both banks and non-banks to issue payment stablecoins in the U.S. The law is expected to accelerate adoption by clarifying regulations and streamlining digital payments. Market leaders USDC and USDT continue to dominate volumes, with stablecoin issuers going public in June and seeing strong investor demand. We are seeing an expanded offering of retail innovation, which introduced crypto-to-stablecoin merchant tools and expanded integrations for USDC into cross-border payments, signaling deeper integration into mainstream finance.
In the broader DeFi and altcoin markets, activity surged in late July and early August. A sharp weekend liquidation event erased over $1 billion in positions, sending some coins down 20%+ from recent highs. Altcoins are likely to remain unpredictable as macro and market rotations shape the weeks ahead.
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