Bitfinex alpha | ETH climbs as BTC integrates

August 25th Bitfinex alpha | ETH climbs as BTC integrates

With the launch of the central bank’s Jackson Hole Economic Symposium last week, Bitcoin was defensive, slipping almost 10% from its high as investors lost risk to weaker ETF flows and hotter inflation data. However, after Fed Chairman Jerome Powell set a tremendous balance, the tone reversed sharply after the symposium, causing a short aperture across digital assets, lifting the majors and regaining market confidence. Ethereum outperformed, surged to a fresh, high, reaching $4,958.70 on Sunday, bolstering its new role as a key liquidity driver for facility demand, but the continued integration of BTC shows a pause rather than a structural weakness.

Flow remains the central driver of price. The US spot ETF saw its heaviest weekly spill since April.

However, the Ministry of Finance accumulation intervened to absorb supply and remained resilient to net structural demand. Global liquidity remains high and the long-term background remains constructive as ETH corporate financial financial balances grow above $100 billion. While BTC appears to be set to trade ranges in the short term, ETH leads the spin and Altcoins wait for a wider vehicle to unlock sustained influx later in the cycle.

Federal Reserve Chair Jerome Powell’s Jackson Hole speech boosted the market in hopes of interest rate cuts in September. Still, he halted his firm commitment to do so, highlighting the Fed’s act of balancing inflation and employment. Treasury yields have declined and stocks have recovered, but Powell has been more cautious than in the past cycle, suggesting that cuts may be limited. Meanwhile, the U.S. housing market showed resilience in July’s rebound of multi-family construction, but permits fell to their five-year lows, reflecting builders’ attention.

Mortgage fees have been eased slightly, but they continue to maintain affordable tensions. Beyond housing, stronger business activities in both manufacturing and services suggest economic momentum, while higher input costs and higher consumer prices indicate sustained inflationary pressures.

At the same time, there was a big movement in the crypto industry. Thailand has launched a pilot’s inter-crypto program to enhance tourism, Sharplink Gaming has expanded its Ethereum holdings beyond 740,000 ETH, and CFTC has expanded its “Crypto Sprint” to promote US digital asset regulations in coordination with the SEC.