#Ethereum overcame the psychologically significant mark of $4,000 and reached $4,200 for the first time in eight months, becoming the dominant force of the week in the cryptocurrency markets. The growth $ETH against Bitcoin of 38% over the month and massive short position liquidations of $105 million demonstrated a shift in institutional interest towards the second-largest cryptocurrency.
Ethereum leads the institutional race
The breakout above $4,000 led to a cascade of short liquidations totaling $108 million, accounting for 72% of all liquidated short positions in the cryptocurrency market. Eric Trump did not miss the chance to gloat: "Stop betting against Ethereum — you'll just get crushed." Over the last four trading days, spot Ethereum ETFs attracted about $537 million, creating additional pressure on bearish positions. Unknown whales accumulated over 1.035 million ETH worth $4.17 billion since July 10 at an average price of $3,546. Vitalik Buterin regained billionaire status with a portfolio of $1.04 billion thanks to his 240,042 ETH.
Corporate reserves vs Bitcoin ETFs: different strategies of one trend
Corporations are showing iron resolve, continuing to buy Bitcoin even during corrections. Data from Capriole Investments shows: companies added over 600 coins on August 4 for $72 million, while American Bitcoin ETFs recorded an outflow of $323.5 million. Japanese Metaplanet acquired 463 Bitcoins for $53.7 million at an average price of $115,895, becoming the first public company to take advantage of the August drop. Strategy doubled its holdings since Trump's victory, accumulating 376,571 Bitcoins over nine months compared to 252,220 $BTC over the previous four years. Analyst Charles Edwards noted an interesting pattern: when corporate reserves make large sales, it usually coincides with local price minima for Bitcoin.
Banks are investing billions in blockchain
Traditional financial institutions have launched a massive assault on blockchain startups, investing $100 billion over four years through 345 investments. Citigroup and Goldman Sachs led the race with 18 deals each, while JP Morgan followed closely with 15 investments. Large funding rounds exceeded $100 million each — there were 33 such deals. Among the standout examples is Brazilian CloudWalk, which raised over $750 million across two rounds. A survey by Ripple showed: 90% of financial leaders believe blockchain will have a "significant or large-scale" impact on the industry within three years. Boston Consulting Group predicts the growth of tokenized assets to $18 trillion by 2033 at an annual growth rate of 53%.
Regulatory revolution is gaining momentum
The Trump administration is pushing regulatory changes at an unprecedented speed. The CFTC launched a "crypto sprint" to implement 18 recommendations from the presidential working group, including the development of guidelines for classifying cryptocurrencies as commodities. The White House is preparing an order to investigate claims by the crypto industry of systemic cutoff from banking services — the so-called "operation Choke Point 2.0". The SEC and Ripple officially ended their years-long litigation, withdrawing mutual appeals in the XRP status case. The head of Bitwise called the speech of the new SEC chair, Paul Atkins, "the most optimistic document on cryptocurrencies" he has ever read. The new Trump order paves the way for the inclusion of cryptocurrencies in 401(k) retirement plans, affecting $12.5 trillion of American retirement savings.
Technological challenges and growing threats
The crypto industry is facing increasing security threats and regulatory pressure. Phishing attacks have become the main threat — one careless click cost an investor $3 million in USDT tokens, while criminals stole over $1 billion in 2024. Tornado Cash co-founder Roman Storm was found guilty of conspiracy to operate an unlicensed money transfer business, which could lead to up to five years in prison. China has declared the World ID project a national security threat due to the collection of biometric data in exchange for cryptocurrency. Scammers stole over $939,000 through fake trading bots advertised on hijacked YouTube channels.
Ethereum demonstrated institutional maturity, successfully overcoming key psychological levels and attracting billions in investments. The combination of capital inflow in #etf , corporate accumulation, and favorable regulations creates a strong foundation for further growth. However, growing cyber threats and geopolitical challenges require market participants to remain vigilant in the rapidly changing cryptocurrency economy.
