22nd August

You can read the last “This week in crypto” here.

Bitcoin saw a notable pullback this week, falling almost 8% to around $113,600—a retreat from the recent peak just above $124,000. Analysts attribute the dip to rising concern over the Federal Reserve's stance ahead of Fed Chair Jerome Powell's speech at the Jackson Hole Symposium. Options markets and ETF spreads indicate waning enthusiasm for imminent rate cuts, although some view the dip as a possible entry point for long-term investors.

Year-to-date, Bitcoin remains up approximately 32%, buoyed by institutional inroads and policy support. However, the correction underscores crypto's sensitivity to macro shifts—particularly interest rate expectations and regulatory signals. Industry watchers note a pattern of sharp corrections following parabolic rallies, urging caution while positive fundamentals persist.

Elsewhere in the market, Ethereum, Solana, and XRP posted modest gains—between 2.7% and 3.5%, weaker than in previous weeks but still notable amid broader volatility. Their resilience suggests diversification among crypto holders and continued interest outside of Bitcoin's headline moves.

Looking ahead, commentaries hinge on Powell’s comments at Jackson Hole. Hawkish rhetoric could deepen the pullback, while dovish signals might reignite the rally—possibly pushing BTC back toward or beyond the $120,000 mark if sentiment shifts positively.

Wealthy family offices across Asia are continuing their aggressive embrace of digital assets—raising allocations to nearly 5% of their portfolios, with some allocating even more in select strategies. UBS observes that younger generations within these wealth groups are particularly crypto-savvy, spurring rapid shifts towards digital exposure.

Funds like Singapore’s NextGen Digital Venture recently raised $100 million for a new crypto equity fund, showcasing investor appetite. One veteran manager mentioned returns of 375% in previous blockchain-focused funds as a key motivator behind renewed confidence in the space.

The trend extends to institutional infrastructure—platforms such as HashKey Exchange (Hong Kong) and major Korean exchanges report substantial growth in both user registration and trading volume. This indicates more than speculative interest; it’s a shift towards a long-term investment strategy.

As the market evolves, this capital may flow into advanced strategies such as tokenised assets, DeFi yield protocols, and NFT-linked real estate ventures. Not only are investors seeking high returns, but they also see crypto as a core hedge and permanent portfolio element, especially amid global instability and inflation hedging needs.

A new memecoin named YZY, unofficially inspired by Kanye West, has stormed onto the Solana blockchain, reigniting debates over the legitimacy and volatility of celebrity-driven crypto projects. Despite West having no known affiliation with the token, YZY surged over 300% within hours of launch, attracting speculative traders and social media influencers in droves.

The coin’s rapid ascent underscores the persistent appetite for meme tokens, particularly among younger retail investors. Solana’s low transaction fees and fast settlement have made it a breeding ground for such launches, allowing tokens to go viral within hours. As of this week, YZY was among the most traded tokens on Jupiter and Raydium, ahead of many established altcoins.

However, the hype has also sparked concern among regulators and critics. With no official team or roadmap, YZY exemplifies the risks of unverified token launches, including rug pulls and market manipulation. While entertaining and profitable for some, industry figures have warned that such activity can erode trust in the broader crypto ecosystem.

Still, the coin’s success is indicative of a larger trend: memecoins continue to capture market share and retail attention. Whether through nostalgia, celebrity connections, or humour, they remain a powerful force—one that exchanges, developers, and regulators must now take more seriously.

New York-based crypto hedge fund Galaxy Arc announced a $100 million launch this week aimed at investing in tokenised equities and infrastructure providers. The fund will focus on firms enabling real-world asset tokenisation, including blockchain-based securities platforms and decentralised finance (DeFi) data rails.

The move aligns with a wider push into tokenised real-world assets (RWAs), as institutions begin to view the blockchain as a mechanism for improving transparency and liquidity in traditional finance. Galaxy Arc’s fund is one of the largest sector-specific launches in 2025 so far, drawing in commitments from European private banks, family offices, and US venture capital groups.

Executives at the firm said they expect growth in the sector to accelerate as more regulatory frameworks mature across the UK, EU, and Asia. With compliance and custody infrastructure improving, they believe tokenised bonds, equities, and private market funds could become standard offerings in wealth management over the next five years.

This expansion reflects a deeper convergence between crypto-native architecture and traditional financial services. Rather than betting on tokens alone, hedge funds are now positioning themselves to capitalise on the infrastructure layer—an evolution that could help stabilise returns and reduce volatility in a maturing crypto market.

This week’s crypto market activity highlights how dynamic and diverse the industry has become. Bitcoin’s correction from recent highs shows how quickly sentiment can shift in response to global policy, while Asia’s wealthy investors are steadily reshaping crypto’s capital base.

At the same time, the memecoin craze is still going strong, with tokens like YZY tapping into pop culture to drive momentum. On the institutional side, the launch of a $100 million fund focused on tokenised equities shows a growing belief that crypto is more than a passing trend—it’s becoming infrastructure. Together, these stories reflect an industry in transition, balancing hype, innovation, and maturing investment frameworks.

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