Bitcoin News Today: Investors Shift to Utility-Driven DeFi Amid Crypto Market Downturn

Bitcoin (BTC) traded below $115,000 in early August 2025, dragging altcoins lower in a broader market selloff. The decline followed a period of profit-taking among traders ahead of Federal Reserve Chair Jerome Powell’s anticipated speech at the Jackson Hole Economic Policy Symposium, where investors were pricing in the possibility of a hawkish stance on interest rates. The price of Bitcoin had dropped nearly 10% from its peak on August 14, with the Coinbase-Binance spread signaling strong U.S. spot selling [2]. The CME FedWatch tool indicated a 73% probability of a 25-basis-point rate cut in September, down from 92% a week earlier [2].

Amid the broader decline, Mutuum Finance (MUTM), a decentralized lending protocol, bucked the trend and continued to gain traction in the market. In presale stage 6, MUTM was priced at $0.035, with over $14.7 million raised and more than 15,500 token holders. The project had already implemented a dual lending model that allowed users to engage in both Peer-to-Contract (P2C) and Peer-to-Peer (P2P) lending. The P2C model used smart contracts to automate interest rate adjustments, while P2P lending directly connected borrowers and lenders without intermediaries [1]. These features, combined with the launch of a USD-pegged stablecoin and a $50,000 bug bounty program, contributed to growing investor confidence.

Mutuum Finance also launched a $100,000 giveaway for its presale participants, with 10 winners receiving $10,000 in MUTM tokens. The project had also secured a 95.0 trust rating from CertiK, a leading blockchain security firm, adding to its credibility in the DeFi space [5]. Analysts highlighted the contrast between MUTM’s utility-driven model and projects like Shiba Inu (SHIB), which relied more on cultural popularity and speculative interest. The presale’s success suggested that investors were increasingly prioritizing projects with real-world use cases and long-term sustainability [1].

The broader crypto market was also impacted by the Federal Reserve’s evolving monetary policy. The Jackson Hole symposium served as a key moment for central bankers to signal their stance on rate cuts and inflation-fighting strategies. The Fed had maintained a hawkish approach throughout 2025, keeping the federal funds rate in a range of 4.25% to 4.5%. The uncertainty surrounding a potential rate cut created volatility in both traditional and digital asset markets [3]. Additionally, the Federal Reserve faced increasing pressure from political figures, including President Donald Trump, who called for lower interest rates and challenged the central bank’s independence [3].

Despite the headwinds, institutional interest in crypto assets remained a stabilizing force. Hong Kong-based Ming Shing Group, a construction firm, had recently shifted into the crypto space by acquiring $483 million worth of Bitcoin, signaling a broader trend of corporate adoption. This move, along with growing regulatory clarity in the form of the GENIUS Act and the SEC’s Project Crypto, could help attract more institutional capital into the market [4]. The evolving regulatory environment and corporate adoption were seen as potential tailwinds for Bitcoin and other digital assets in the long term.

Market observers were divided on whether a full-scale altseason would emerge in the second half of 2025. While Bitcoin continued to face short-term pressures, projects like Mutuum Finance demonstrated that innovation in DeFi could provide alternative growth opportunities for investors. With a clear roadmap spanning four phases and strong presale performance, MUTM was positioned as a potential high-growth asset in a market increasingly focused on utility and sustainability [6].

Source: [1] Why Mutuum Finance (MUTM) Might Be the Smarter Play Over Shiba Inu (SHIB) in 2025 (https://www.cryptopolitan.com/why-mutuum-finance-mutm-might-be-the-smarter-play-over-shiba-inu-shib-in-2025/) [2] Bitcoin Traders Position for Jackson Hole. What Powell's Big Speech Could Mean for Crypto (https://www.investopedia.com/bitcoin-traders-position-for-jackson-hole-what-powell-big-speech-could-mean-for-crypto-11795212) [3] Understanding the Fed's Jackson Hole Symposium (https://www.investopedia.com/why-the-feds-jackson-hole-symposium-is-important-to-you-11794575) [4] Crypto Markets Decline Ahead of Fed Insights at Jackson Hole (https://europeanbusinessmagazine.com/business/crypto-markets-under-pressure-ahead-of-fed-powells-insights-at-jackson-hole-inbox/) [5] Best Crypto to Buy That Could 1000x By 2030 if You Missed Bitcoin (BTC) (https://www.securitytokenizer.io/news/best-crypto-to-buy-that-could-1000x-by-2023-if-you-missed-bitcoin) [6] Cheapest crypto? Don't miss MUTM at $0.035 if you missed ETH under $1 (https://invezz.com/news/2025/08/20/cheapest-crypto-dont-miss-mutm-at-0-035-if-you-missed-eth-under-1/)