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Crypto markets maintained their bullish momentum in early August 2025, with
leading the charge after recording historic inflows into ether ETFs. Ether rose over 41% in a month, driven by sustained inflows into spot ETF products. On August 12, Ethereum spot ETFs captured over $1.02 billion in a single day, with BlackRock’s ETHA ETF receiving $426 million in the same period. This marked the highest inflow since these products launched in July 2025 [3]. The inflows far outpaced Ethereum’s daily issuance, with 8,400 ETH absorbed through ETFs compared to just 2,600 ETH created through post-EIP-1559 burns [3].Bitcoin remained stable near $120,000, but market dynamics suggested a shift in capital flows. Analysts noted that altcoin strength was propping up
, an unusual pattern where smaller tokens drove the broader crypto index. The ETH/BTC ratio increased by 18% month-to-date, signaling a capital rotation from Bitcoin into Ethereum [3]. Bitcoin’s implied volatility remained near record lows, suggesting a perception of price stability, while Ethereum’s short-term volatility surged, indicating heightened trader interest in potential upside [3].The broader macroeconomic environment supported the rally. Markets priced in a high probability of a U.S. Federal Reserve rate cut by year-end, with expectations of a 50 basis point cut in September alone. History shows that lower interest rates typically drive capital into high-growth and alternative assets, which includes digital assets. This backdrop, combined with favorable policy shifts and increased institutional adoption, provided additional tailwinds for crypto [1].
Corporate demand for Ethereum also intensified. Public companies increased their Ethereum holdings by 84% since July 2025, controlling 1.15 million ETH valued at approximately $5 billion [3]. This trend resembles MicroStrategy’s Bitcoin accumulation strategy and reflects growing institutional confidence in Ethereum as a form of “productive collateral,” with staking yields offering around 3% annual returns [3].
Political signals further reinforced bullish sentiment. Former U.S. President Donald Trump’s comments on allowing digital assets in retirement accounts added speculative interest in long-term adoption, while Standard Chartered analysts forecasted that corporate Ethereum holdings could rise from 1% to as high as 10% of the total supply by 2026 [3].
Ethereum’s technical indicators also turned positive. A bullish MACD crossover and rising RSI signaled increased momentum, while ETF inflows accounted for 4.7% of Ethereum’s circulating supply, creating structural supply pressure that could support continued price strength [3]. With these factors aligning, Ethereum is positioned to retest its all-time highs in the near term.
Sources:
[1] https://www.coindesk.com/markets/2025/08/13/bitcoin-holds-near-usd120k-ether-rallies-towards-usd4-7k-on-trump-s-comment-fed-rate-cut-bets
[2] https://m.economictimes.com/markets/cryptocurrency/ethereum-outpaces-crypto-market-with-41-monthly-surge-bitcoin-at-119k-should-you-buy/articleshow/123274597.cms
[3] https://cryptodnes.bg/en/ethereum-soars-past-4400-as-etf-inflows-and-corporate-buys-spark-21-weekly-surge/
[4] https://www.ainvest.com/news/ethereum-news-today-ethereum-surges-30-rate-cut-hopes-policy-shifts-boost-crypto-markets-2508/

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