15th August

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

Bitcoin has stormed into uncharted territory once again, hitting an all-time high of $124,496 this week. The milestone comes off the back of strong macroeconomic sentiment, increasing institutional inflows, and optimism surrounding upcoming Federal Reserve rate cuts. Markets are pricing in a 75% chance of a September rate cut in the US, with falling bond yields and slowing inflation creating favourable conditions for risk-on assets. With Bitcoin seen by many as a macro hedge and high-beta asset, it’s no surprise to see it at the centre of the current rally.

Fuel has also come from sustained institutional interest, particularly following the success of US spot Bitcoin ETFs, which have now accumulated over $80 billion in assets under management since their launch earlier this year. Major asset managers, including BlackRock and Fidelity, continue to drive inflows, while new pension funds and family offices are reportedly exploring allocations. Bitcoin is not only seeing strong performance, but also increasing legitimacy as a long-term portfolio holding.

Beyond traditional finance, Bitcoin’s resurgence is attracting renewed interest across retail segments. Search trends for “Bitcoin” have spiked globally, and exchange volumes have risen sharply over the past week, particularly in Asia and Latin America. In countries experiencing currency depreciation or capital controls, Bitcoin’s role as a store of value remains critical. The halving, now just weeks away, is also acting as a psychological and technical catalyst—reducing miner rewards while reinforcing Bitcoin’s scarcity narrative.

Yet while price action dominates headlines, it’s the broader shift in narrative that stands out. Bitcoin is increasingly being seen not just as a speculative asset, but as a foundational layer for the future of finance. With regulation beginning to settle across major economies and corporate adoption accelerating, this rally feels more structured and substantiated than the 2021 cycle. Whether Bitcoin can sustain momentum above $120,000 remains to be seen—but the current sentiment is firmly bullish.

Ethereum is enjoying its strongest rally in months, rising over 87% in the last 90 days and closing in on its all-time high of $4,891. The move is being driven by a combination of macro tailwinds, surging institutional demand, and growing confidence in Ethereum’s future as the foundation of decentralised applications and tokenised finance. As Bitcoin leads from the front, Ethereum is increasingly viewed as the next likely candidate for widespread institutional exposure, particularly via regulated products like ETFs.

Multiple ETF providers have now filed for spot Ethereum ETFs in the US, with some analysts predicting approval could arrive by late Q3. This follows the SEC’s recent decision to engage more proactively with applicants—widely seen as a softening stance from the regulator. If greenlit, these funds would open the door to billions in fresh capital, particularly from institutional investors who are restricted from direct crypto exposure. Even without formal approval, the mere anticipation is fuelling significant inflows into ETH across exchanges and OTC desks.

At the same time, Ethereum’s fundamentals continue to improve. The network’s transition to proof-of-stake has dramatically reduced energy usage, and staking yields remain strong—currently hovering around 3.6% for individual stakers. With over 31 million ETH now locked in the staking contract, the supply of liquid Ethereum has tightened, providing additional support for the price. The combination of yield, security, and real-world utility makes ETH a compelling asset in a diversified crypto portfolio.

What’s particularly notable is how Ethereum is starting to decouple from speculative narratives and reassert itself as infrastructure. From decentralised finance and stablecoins to tokenised assets and real-world applications, Ethereum’s role as a programmable settlement layer is clearer than ever. As developers, enterprises, and institutions increasingly converge on the Ethereum ecosystem, the asset is gradually evolving from “altcoin” to digital staple. If ETF approval does arrive later this year, ETH may finally cement its position as the second pillar of mainstream crypto adoption.

In a strategic move aimed at increasing adoption, Tether has announced a significant reduction in fees for retail transfers of its flagship stablecoin, USDT. The new pricing model brings on-chain transaction costs down by as much as 65% on certain blockchains, including Polygon, Tron, and Optimism, while zero-fee transfers are being trialled through select wallet partners in Asia and Latin America.

This development comes at a critical time as stablecoin competition intensifies. Circle’s EURC has seen a sharp uptick in European adoption following its MiCA compliance, and First Digital USD (FDUSD) is now gaining traction among traders due to Binance’s deep integration. Tether’s fee cuts are a clear signal that it intends to retain its market dominance by removing friction for small-value transfers and cross-border payments.

Industry analysts suggest the move could accelerate Tether’s presence in retail payments, especially in emerging markets where users often rely on stablecoins to hedge against local currency volatility. With lower fees and fast settlement times, USDT is positioning itself not just as a trading tool, but as a real-world payments solution. The decision may also pave the way for partnerships with neobanks and fintech apps focused on underbanked populations.

This pivot could also help counter lingering concerns about transparency and reserves. By bolstering day-to-day usage, Tether seems keen to move the conversation from audit scrutiny to practical adoption. If the strategy succeeds, we could see a shift in how regulators approach stablecoin providers—differentiating those serving real-world utility from those focused purely on crypto-native applications.

Hut 8 Mining, one of North America’s largest Bitcoin mining firms, has announced an ambitious plan to build “AI supercentres” powered by its excess renewable energy and underutilised mining infrastructure. The first centre, set to open in Alberta, Canada, will house high-performance computing clusters designed for artificial intelligence training and enterprise cloud workloads.

The strategic pivot reflects broader changes in the digital infrastructure space, as firms seek to diversify revenue streams beyond crypto mining. With Bitcoin halving events squeezing miner margins, companies like Hut 8 are looking to apply their existing data centres and cooling systems to more stable, long-term verticals.

The announcement triggered a modest 9% rally in Hut 8’s share price and has been praised by investors as a sign of forward-thinking leadership. Analysts have noted that the crossover between blockchain and AI could become a defining theme of the next five years. Mining firms already possess expertise in managing distributed computing environments—skills increasingly relevant in the AI sector.

As institutional demand for both AI and decentralised infrastructure continues to climb, Hut 8’s repositioning might inspire similar moves across the industry. It also underscores the potential for crypto-native companies to evolve into broader tech infrastructure providers, blurring the lines between mining, cloud, and AI.

This week in crypto has been defined by growth, transformation, and long-term vision. Bitcoin’s surge past $124,000 marks another historic high, driven by macro optimism and institutional support.

Ethereum continues its climb with renewed interest from ETF providers and staking platforms. Tether’s aggressive fee reduction strategy signals an intent to become indispensable for everyday payments, especially in developing economies.

Meanwhile, Hut 8’s pivot into AI reflects a maturing industry ready to explore sustainable, future-proof applications of its infrastructure. As markets rally, the crypto sector is demonstrating its ability to evolve—quickly, boldly, and increasingly in step with global technology trends.

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