Daily Crypto Roundup - 4 Sep
Today’s Market Update
"Nothing marks a Bitcoin dominance top like a whale rotating into Ethereum," said Joel Valenzuela, core founder of Dash DAO (DASH).
A Bitcoin whale, holding around $11 billion in BTC reportedly shifted $2.59 billion into Ethereum—allocating $2.2 billion for spot ETH and $577 million into perpetual long positions, realizing about $33 million in profits. Additionally, Arkham data revealed on August 29 that nine massive whale addresses acquired a combined $456 million in ETH, signaling a "natural rotation" of capital from Bitcoin to Ethereum.
It's not just old Bitcoin holders pumping Ethereum's value. It's Wall Street that's driving a lot of the investment thesis behind the world's leading blockchain.
"The rotation into Ethereum tells us something important: institutions are no longer just buying crypto, but they are also allocating to infrastructure, as in blockchains," said Andrei Grachev, Managing Partner of DWF Labs, a Web3 investment firm and market maker based in Singapore.
Crypto Dynamics Roundup
Bitcoin Daily Hash Rate Hits Historic High of 1.279 ZH/s
According to Decrypt, mining data platform CoinWarz reports that Bitcoin’s daily hash rate reached a historic high of 1.279 ZH/s on Tuesday, despite the asset’s price remaining largely flat over the past 24 hours. The seven-day moving average of Bitcoin’s hash rate also hit a high, surpassing 1 ZH/s during this period.
Despite miners facing rising energy costs and reduced rewards, hash rates continue to climb. Since last year’s “halving,” miners’ rewards have dropped from 6.250 to 3.125 Bitcoin. Miners typically rely on rising Bitcoin prices to offset costs, but with the asset’s persistent volatility, some major miners are shifting toward high-performance computing.
Crypto Exchange Trading Volume Hits $1.86 Trillion in August, Highest Since January
According to The Block, the monthly spot trading volume on crypto exchanges in August reached $1.86 trillion, up 5% from $1.77 trillion in July, marking the highest level since January this year. Binance led with $737.1 billion in volume, up nearly $31 billion month-over-month; Bybit and Bitget recorded $126.5 billion and $126.1 billion, respectively.
Additionally, decentralized exchange (DEX) trading volume rose to $368.8 billion in August, also the highest since January. Uniswap topped the list with $143 billion, followed by PancakeSwap with $58.7 billion. Notably, investor interest in Ethereum has surged recently, with $3.87 billion flowing into US spot Ethereum ETFs in August, while Bitcoin ETFs saw $751 million in outflows.
US Bankcorp Relaunches Crypto Custody Services for Institutional Clients
US Bankcorp has relaunched cryptocurrency custody services for institutional clients, expanding its product range to include Bitcoin ETFs.
Prediction Market Polymarket Gains CFTC Approval to Return to US Market
According to Decrypt, Polymarket CEO Shayne Coplan stated on Wednesday that the company, after being fined and forced to relocate overseas for years due to alleged regulatory violations, has now received approval from the CFTC to resume operations in the US.
The CFTC announced today that it will not take enforcement action against Polymarket’s acquisition of regulated derivatives exchange QCX in July and has exempted it from certain record-keeping and data reporting requirements. Minutes after the statement, Coplan said the no-action letter effectively allows Polymarket to operate in the US under QCX’s license.
K33 Research Head: Bitcoin May Face Downward Pressure in September Due to Macro Factors
According to The Block, K33 Research Head Vetle Lunde warned that Bitcoin may face downward pressure in September due to tariff pressures and US economic data releases, with support levels at $101,000 and $94,000.
Lunde noted high leverage levels in perpetual contracts, making the market vulnerable to liquidations. Bitcoin ETFs saw a net outflow of 15,399 BTC in August, and CME futures participation dropped to a historic low. Despite short-term pressure, Lunde believes the long-term thesis for Bitcoin remains intact and plans to re-enter the market after September.
FATF Chair: Countries Must Disclose Shell Company Owners Transparently, Criminals Using Crypto for Cross-Border Transfers
The chair of the Financial Action Task Force (FATF) stated that countries must disclose shell company owners more transparently, a key issue in the new round of assessments. Criminals are increasingly using cryptocurrencies for cross-border fund transfers.
Pakistan Central Bank to Withdraw Crypto Trading Warning, Works on Digital Currency
Pakistan’s Ministry of Finance announced that the State Bank of Pakistan will withdraw its warning against crypto trading. The central bank is working on launching a digital currency.