A Brief Overview of August

In addition to the recent weak regulation and framework establishment by the SEC, there are three major positive factors within the crypto market:

1. Large unlocks have decreased by 52%, easing the inertia selling pressure.

2. Expansion of stablecoin supply, with on-chain issuance of USDT and USDC expected to surge.

3. $ETH spot ETF staking second application window.

Additionally, after experiencing a net outflow of funds on July 22, ETFs returned to significant capital inflow on the 25th, while the overall daily trading volume within crypto has begun to recover, with marginal buying starting to test a return ahead of macro developments.

The risks have essentially been overly discussed; the FOMC meeting in early August and the countdown to Trump's tariffs are mainly focused on inflation and tariffs. Unless there’s a black swan event, the impact on sentiment is likely to be minimal.

The altcoin market is essentially the biggest loser; it remains to be seen if August can break the curse. With 2025 more than halfway through, the depth remains concentrated on $BTC and a few mainstream chains, while altcoins are still below 2021 highs, lacking sustained incremental capital.