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Professional investors shift strategies in August, favoring Ethereum and DeFi tokens over Bitcoin amid market volatility.
ByAinvest
Wednesday, Sep 3, 2025 2:17 pm ET1min read
In August 2025, crypto markets saw significant price swings, with Bitcoin hitting a new all-time high before a whale-driven sell-off. Amid this volatility, professional asset managers shifted strategies, cutting exposure to Bitcoin and adding it to Ethereum and DeFi tokens. Institutional and regulatory developments added clarity, reinforcing a more disciplined and yield-focused market. Ethereum and DeFi tokens surged amid ETF inflows and staking yields, while altcoins like Solana, XRP, and Chainlink saw notable gains.
Bitcoin's (BTC-USD) price volatility has significantly decreased this year, according to JPMorgan strategists, which may open new doors for the cryptocurrency on Wall Street [1]. The three- and six-month rolling volatility of Bitcoin has fallen to a historically low level, even as the cryptocurrency set new record highs in May, July, and August. This trend is attributed to companies rapidly stockpiling Bitcoin, with corporate treasuries now holding over 6% of Bitcoin's total supply [1].The decline in Bitcoin's volatility could make the cryptocurrency more attractive to investors. JPMorgan's Nikolaos Panigirtzoglou believes that as volatility drops, Bitcoin could become a more competitive alternative to gold [1]. This trend is driven by the increasing adoption of Bitcoin by public and private companies. For example, Trump Media & Technology Group (DJT), GameStop (GME), and Metaplanet (MTPLF) have all invested tens of billions of dollars in Bitcoin since the beginning of January [1].
In August 2025, crypto markets experienced significant price swings. Bitcoin hit a new all-time high before a whale-driven sell-off, causing professional asset managers to shift strategies. They reduced exposure to Bitcoin and added it to Ethereum and DeFi tokens [2]. Ethereum and DeFi tokens surged amid ETF inflows and staking yields, while altcoins like Solana, XRP, and Chainlink saw notable gains [2].
Institutional and regulatory developments added clarity to the market, reinforcing a more disciplined and yield-focused approach. The Federal Reserve's key interest rate decisions in the coming months are expected to introduce volatility, potentially benefiting smaller tokens like MAGACOIN FINANCE [2].
References:
[1] https://finance.yahoo.com/news/bitcoin-is-getting-boring-that-could-open-more-doors-for-the-crypto-asset-on-wall-street-091231252.html
[2] https://www.ainvest.com/news/ethereum-news-today-investors-turn-magacoin-ethereum-staking-unlocks-loom-2508/
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