TL;DR

SEC launches on-chain securities push; Bitcoin ETFs see $812M outflows; $863M in liquidations.

Highlights

• SEC unveils “Project Crypto” to enable on-chain issuance, trading, and settlement of U.S. securities 1.
• U.S. crypto ETFs reverse after record July inflows: $812M outflows from Bitcoin ETFs, $152M from Ether ETFs on August 1 23.
• Bitcoin drops below $113,000, triggering $863.6M in liquidations; Ethereum falls 7% to $3,463 3.
• Bitcoin dominance rises above 62% as CME futures gap at $114,325 is filled; altcoin season index cools 9.
• MicroStrategy (Strategy Inc.) posts $10B Q2 net income, holds 628,791 BTC, and plans to raise $4.2B for further Bitcoin purchases 410.
• Trump Media reports $20M Q2 loss but builds $2B Bitcoin treasury and files for crypto ETF products; Trump’s super PAC receives $26M in crypto donations 520.
• Sharplink Gaming accumulates 464,000 ETH ($1.63B) via OTC deals; separate whale opens 40,000 ETH short with 15x leverage 6.
• Over $800M in leveraged crypto positions liquidated in 24 hours, mostly from longs 7.
• Bitcoin long-term holder supply drops 11% in 30 days; $18.24B in BTC sold by short-term holders in one day 8.
• Ethereum retraces after 7-month high above $3,900, falling back below $3,500 13.
• Solana sees $4.5B in USDC minted in July, economic value rises, and CME futures activity triples 15.
• U.S. Treasury Secretary Bessent signals federal support for blockchain; VanEck and Fundstrat set long-term Bitcoin targets up to $500,000 1619.

Commentary

The start of August has seen a sharp reversal in crypto market sentiment, with ETF flows flipping negative after July’s record $12.8B inflows 317. Bitcoin and Ethereum both faced heavy outflows from major ETFs, triggering forced liquidations and a rapid price correction 23. The completion of the CME futures gap at $114,325 and Bitcoin dominance climbing above 62% suggest the market is rotating back to Bitcoin leadership, while altcoin momentum—especially in Ethereum —has cooled 93.

Regulatory signals remain a key driver. The SEC’s launch of “Project Crypto” marks the agency’s clearest support yet for integrating blockchain into U.S. capital markets, with potential long-term implications for asset tokenization and institutional adoption 1. Treasury Secretary Bessent’s remarks further reinforce the policy backdrop, even as short-term volatility persists 19.

On the corporate front, MicroStrategy ’s record profits and new $4.2B capital raise for further Bitcoin accumulation underscore ongoing institutional interest in BTC as a treasury asset 410. Trump Media’s $2B Bitcoin buy and ETF filings, alongside substantial crypto donations to Trump’s super PAC, highlight the growing intersection of crypto, politics, and corporate balance sheets 520. Meanwhile, Solana ’s surging USDC minting and derivatives activity point to continued growth in alternative Layer 1s, despite the current Bitcoin-led rotation 15.

Traders should monitor ETF flows, Bitcoin dominance, and technical levels for further signs of rotation or renewed risk appetite 39. Large-scale ETH accumulation and leveraged shorting indicate ongoing volatility and institutional positioning in Ethereum 6. Macro policy headlines and regulatory developments remain critical for short-term direction 119.