Crypto Weekly Digest | Will "Trump Coins" Drive Crypto to New Highs?

The highly anticipated Bitcoin Asia 2025 was held in Hong Kong from August 28th to 29th. With an expected attendance of 15,000, it became the second-largest Bitcoin event globally, further elevating the status of Hong Kong and Asia on the world's digital economy stage. Speakers included Binance founder Changpeng Zhao (CZ) and Eric Trump, son of US President Donald Trump.

Eric Trump's attendance continues the trend of the Trump family's frequent participation in cryptocurrency events; his brother, Donald Trump Jr., is also scheduled to attend Korea Blockchain Week in September. Eric Trump has publicly referred to Bitcoin as "digital gold" and has repeatedly criticized the Biden administration's crypto regulatory policies. His trip to Hong Kong coincides with the region's push for several crypto-friendly legislations, including a stablecoin regulatory framework, which is progressing faster than the GENIUS Act in the United States.

Last week, Federal Reserve Chairman Jerome Powell's dovish remarks at the Jackson Hole Economic Symposium helped push the price of ETH to a new all-time high on the same day, and it broke further to a record high of $4,958.75 on Sunday.

Powell's dovish stance implies that the Fed has more reason to implement further interest rate cuts in September. A lower benchmark rate means lower borrowing costs. As capital liquidity increases with rate cuts, risk appetite for crypto assets is expected to strengthen, and this surplus capital could flow into cryptocurrencies like ETH.

Besides the favorable macro-interest rate environment, ETH's continued rise this year is also attributed to institutional capital inflows, the boom in decentralized finance (stablecoins, DeFi on-chain), and upgrades to the Ethereum network.

Particularly noteworthy is that ETH is now repeating Bitcoin's "hodling" narrative, where corporations and small public companies are continuously adding ETH to their balance sheets. Unlike Bitcoin's limited supply logic, holding ETH not only offers potential appreciation but also provides a native yield of over 3% through PoS staking, creating sustainable long-term financial returns.

It is precisely this staking mechanism that led Standard Chartered to raise its year-end price target for ETH from $4,000 to $7,500 in August of this year.

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JPMorgan analysts stated that Bitcoin's current price is "too low" compared to gold, as its volatility has dropped to an all-time low. Bitcoin's volatility has decreased from nearly 60% at the beginning of the year to about 30% currently, a record low. The analysts stated that Bitcoin's fair value is approximately $126,000 and expect this target to be reached by the end of the year.

According to @Cointelegraph, David Bailey, a crypto advisor to Donald Trump, stated, "There won't be another Bitcoin bear market for years to come."

On August 29th, crypto analyst @IamCryptoWolf expressed his market view, stating that after a 250% rally, ETH broke through the multi-year resistance level of $4,000. He suggests it may consolidate in the $4,000-$5,000 range for nearly a quarter before initiating its next leg up.

Upon completion of the business combination, Trump Media Group CRO Strategy, Inc. will be majority-owned by Yorkville, Trump Media, and Crypto.com as founding partners. The expected funding sources for the digital asset reserve company include: $1 billion worth of CRO (6,313,000,212 CRO, representing approximately 19% of CRO's total market cap at the time of announcement), $200 million in cash, $220 million in cash from the mandatory exercise of warrants, and a $5 billion equity line of credit from Yorkville's affiliate, YA II PN, Ltd., totaling $6.42 billion. This will make it the first and largest publicly traded CRO reserve company. To demonstrate their long-term commitment, Yorkville, Trump Media, and Crypto.com have agreed to a mandatory one-year initial lock-up period for their founding equity following the business combination, with a subsequent phased release over a three-year schedule.