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Memecoins have been under heavy selling pressure since December 2024, with many declaring the sector as good as dead. Prices collapsed across the board, liquidity dried up, and retail enthusiasm that once fueled massive rallies seemed to vanish. For months, memecoins have trended lower, underperforming most of the broader crypto market and leaving investors skeptical about their long-term survival.

Yet, despite the gloom, some analysts argue that dismissing memecoins entirely may be premature. As the market prepares for a new phase driven by shifting liquidity flows, institutional positioning, and macroeconomic catalysts, speculation could once again find fertile ground in this volatile sector. Top analyst Darkfost has gone as far as to suggest that the time to take a fresh look at memecoins may have arrived. According to him, data shows that the market is entering an area where memecoin dominance has historically regained strength, often sparking sharp rebounds.

While risks remain high—memecoins are still among the most speculative assets in crypto—the potential for explosive gains continues to attract attention.

Memecoin Dominance Signals Possible Rebound

Darkfost highlights the importance of monitoring the Memecoin Dominance in Altcoin Markets chart, which compares the market capitalization of key memecoins against that of established altcoins. This ratio offers valuable insight into whether memecoins are gaining or losing influence relative to the broader altcoin sector.

Since the massive rush that peaked at the end of 2024, memecoins have been in a prolonged decline, steadily losing both valuation and investor interest. The frenzy that once drove parabolic gains gave way to exhaustion, with most of the sector retracing sharply.

Investors in memecoins understand the unique challenge of this asset class. Unlike Bitcoin or Ethereum, memecoins often lack fundamental backing, making them highly speculative. As a result, timing entries and, more importantly, exiting positions quickly to secure profits are essential strategies. Hesitation can easily turn short-term gains into significant losses.

Despite this, Darkfost observes that the memecoin dominance chart is signaling a potential turning point. The ratio has entered an area where memecoins have historically regained strength, marking the beginning of sharp rebounds. Early signs of reaction suggest that market sentiment may be shifting, with speculative capital slowly re-entering the space.

If the trend persists, the conditions could align for a renewed memecoin mania. While it may not replicate the extreme fervor of late 2024, a resurgence in speculative appetite could drive significant rallies. For traders watching closely, the data implies that memecoins may once again become a hot narrative in the crypto cycle, though managing risk remains paramount.

Market Cap Growth Analysis

The chart of the Memecoin Market Cap (Daily) shows how the sector remains highly volatile, reflecting speculative behavior that defines this corner of the crypto market. After rebounding strongly from the July lows near $64B, the market surged to a local peak above $88B in early September. However, that momentum quickly faded, with the cap now retracing toward $75B, down nearly 5% in the latest session.

The 50-day moving average at $68.7B has acted as a strong dynamic support throughout this recovery, showing that buyers continue to step in when valuations approach this level. Meanwhile, the sector’s ability to push above $80B and briefly test the $88B resistance highlights that speculative capital is still present, even if profit-taking remains aggressive.

For now, memecoins are consolidating after a sharp upswing, and the market appears to be searching for balance. If capitalization holds above the $72–74B range, a renewed attempt to reclaim $80B could follow, reigniting bullish sentiment. On the other hand, a breakdown below the 50-day average would suggest fading momentum and open the door for a deeper retracement. Ultimately, memecoins remain sensitive to liquidity flows and broader risk sentiment, making timing critical.

Featured image from Dall-E, chart from TradingView

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For most of this cycle, global liquidity is one of the most accurate indicators for predicting Bitcoin price action. The relationship between expanding money supply and growing risk assets is well established, and Bitcoin follows its script very closely. But recently we have been paying close attention to a few other data points that are statistically even more accurate when predicting where Bitcoin is heading next. Together, these metrics help to draw more clearly whether the recent stagnation in Bitcoin represents a short-term pause or the beginning of a long integration phase.

Bitcoin price trends driven by a global liquidity shift

Relationships between Global liquidity, especially M2 money supply, and Bitcoin prices It’s hard to ignore. As liquidity increases, Bitcoin tends to gather. Bitcoin will have a hard time with contracts.

The correlation measured for this current cycle is an impressive 88.44%. Adding a 70-day offset will result in a higher correlation of 91.23%. This means that changes in liquidity often precedes the movement of Bitcoin. The framework has proven to be extremely accurate in capturing a wide range of trends, with cycle dips lined up to tightening global liquidity and subsequent recovery reflecting updated expansions.

Still, there has been a noticeable divergence recently. Liquidity continues to rise, sending signals of support for the rise in Bitcoin prices, but Bitcoin itself has stagnated after creating a record high. This difference is worth monitoring, but it does not override the broader relationship. In fact, it may suggest that Bitcoin simply lags behind liquidity conditions, as it did at other points in the cycle.

Stablecoin Supply Signaling Bitcoin Market Surge

While global liquidity reflects the broader macro environment, Stablecoin Supply offers a more direct view of capital ready to enter digital assets. When USDT, USDC and other stub coins are minted in large quantities, this represents “dry powder” waiting to spin into Bitcoin, and ultimately represents a more speculative altcoin. Surprisingly, the correlation here is even stronger than M2 at 95.24% without offset. All major inflows of Stablecoin liquidity preceded or accompanied by the surge in Bitcoin prices.

What makes this metric powerful is its peculiarity. Unlike global liquidity covering the entire financial system, Stablecoin’s growth comes from a cryptographic origin. This represents the direct potential demand within this market. But again, we see divergence. Stablecoin Supply is expanding aggressively, creating new highs and Bitcoin is integrated. Historically, this divergence does not last long. This is because this capital will eventually flow into risk assets in search of returns. Whether this is an imminent inverted or suggests slow rotation is still unknown, but the strength of the correlation becomes one of the most important metrics to track in the short to medium term.

Bitcoin prediction power of gold’s high correlation delays

At first glance, Bitcoin and Gold do not share a consistently strong correlation. Their relationships are choppy, sometimes they move together, sometimes they branch out. However, applying the same 10-week delay will give you a clearer image when applied to global liquidity data. Over this cycle, gold with a 70-day offset shows a 92.42% correlation with Bitcoin, which is higher than the global M2 itself.

The alignment is impressive. Both assets have bottomed out at about the same time, but their major gatherings and integration have since followed a similar trajectory. Recently, gold has been trapped in a long-term integration phase, and Bitcoin appears to reflect this in its own choppy behavior. If this correlation holds, Bitcoin could remain bound to range until at least mid-November, reflecting stagnant behavior in gold. But now Gold is technically strong and ready to go for the highest ever high, so once the “digital gold” story is reasserted, Bitcoin could soon follow.

Bitcoin’s next move is predicted by key market metrics

To sum up, these three metrics, global liquidity, Stablecoin Supply, and Gold, provide a powerful framework for predicting the next move in Bitcoin. Global M2 remains a reliable macro anchor, especially with a delay of 10 weeks. Stablecoin’s growth provides the clearest and most direct signal of incoming crypto demand, suggesting that its accelerated expansion will increase pressure on higher prices. Meanwhile, Gold’s delay correlation refers to the period of integration before potential breakouts in the coming weeks, providing a surprising but valuable predictive lens.

In the short term, this confluence of signals suggests that Bitcoin continues to sculpt sideways, reflecting gold stagnation as liquidity increases in the background. However, if gold breaks into new highs and Stablecoin continues to be issued at its current pace, Bitcoin could be set up for a strong year-end gathering. For now, perseverance is important, but the data suggests that conditions based on Bitcoin’s long-term trajectory are preferred.

Have you noticed the dynamics of Bitcoin’s price in this deep dive? For more expert market insights and analysis, subscribe to Bitcoin Magazine Pro on YouTube!

For more in-depth research, technical metrics, real-time market alerts, and access to expert analytics, visit bitcoinmagazinepro.com.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making an investment decision.

Bitcoin (BTC) holding patterns suggest a potential resumption of the uptrend starting in late September 2025, as long-term accumulation data reveals evolving market dynamics driven by institutional adoption and policy catalysts.

CryptoQuant Korean Community Manager Crypto Dan’s analysis reveals that the current cycle differs from previous bull markets due to extended timeframes and flattening momentum slopes.

The percentage of Bitcoin held for over one year based on realized market cap demonstrates the current cycle’s unique characteristics compared to previous phases.

Unlike past cycles, where sharp surges led to rapid peaks, institutional adoption through spot exchange-traded funds (ETFs) and nation-state purchases has extended the bull market’s duration while gradually flattening the uptrend’s slope.

Market momentum faces periodic stalls when capital flows shift toward altcoins, a pattern that has repeated multiple times during the current cycle. It contrasts with 2023-2024, when Bitcoin dominated market attention before capital began migrating to alternative cryptocurrencies.

Favorable backdrop

Crypto Dan noted that September rate cut expectations align with Bitcoin’s seasonal patterns and technical indicators.

Polymarket traders currently place 81% odds on a 25 basis point Federal Reserve rate cut at the September FOMC meeting, providing a potential catalyst for risk asset appreciation.

The analysis also anticipates additional momentum from the expected approvals of altcoin ETFs in October.

Bloomberg ETF analyst James Seyffart stated in April that most crypto ETF applications face final deadlines in October, making it the likely approval month for spot altcoin products.

This timeline creates a favorable policy window for crypto markets as they enter the fall season.

Combined with seasonal patterns that show Bitcoin’s strength in autumn months, the convergence of dovish monetary policy and regulatory clarity positions the market for renewed upward momentum following the current consolidation phase.

Extended cycle characteristics

Institutional adoption fundamentally altered Bitcoin’s cycle dynamics compared to the retail-driven phases that preceded it.

The introduction of spot ETFs and corporate treasury adoption created more stable demand flows but extended the cycle’s duration. The analysis suggested these structural changes support sustained bull market conditions despite periodic consolidation phases.

Given the favorable policy backdrop and development of institutional infrastructure, any additional corrections during the transition period could present attractive opportunities for accumulation.

The combination of rate cuts, ETF approvals, and seasonal factors supports an optimistic market outlook for fall and winter 2025.

Mentioned in this article

Bitcoin is trading around $111,000 after several days of losing ground below its all-time high of $124,500. Bulls have managed to keep the price above the key $110,000 support, but momentum remains weak as attempts to push higher continue to fail. Some analysts warn of a deeper correction ahead if buyers cannot step in with stronger conviction.

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Top analyst Axel Adler shared new insights, pointing to the behavior of Bitcoin’s annual Adjusted MVRV. Currently, the metric has pressed against the 1.0 zone, meaning the short-term average (30-day) is almost identical to the longer-term average (365-day). In practice, this shows that the market is in a balancing phase: recent profit-taking and volatility are being absorbed by the longer-term growth trend, keeping the overall structure neutral.

Historically, this 1.0 level has often represented a pause within bullish cycles rather than the end of them. It signals that the market is digesting recent gains as short-term holders hand coins to longer-term investors. Whether Bitcoin breaks down to test lower demand zones or stabilizes before another leg higher will likely be decided in the coming weeks, as traders closely watch this critical support zone.

Bitcoin Adjusted MVRV Signals Pause, Not Reversal

According to Adler, Bitcoin’s annual Adjusted MVRV is currently pressed right at the 1.0 zone, and the dynamics behind it tell an important story. The annual basis remains positive, and its curve looks largely horizontal because two opposing forces are offsetting each other. On the one hand, the 30-day metric has cooled significantly as volatility eased and profit-taking slowed after the latest push to all-time highs. On the other, the heavier 365-day average still reflects the gains of past months, holding up the broader trend.

This synchronization between numerator and denominator compresses the difference, keeping the basis line steady rather than sliding downward or accelerating upward. In simple terms, the market is digesting the previous rally rather than breaking down.

Adler stresses that this situation at the 1.0 zone should not be mistaken for the end of a cycle. Instead, it represents a pause within an ongoing bullish structure. As long as the annual basis does not reverse downward, the market is essentially redistributing coins from short-term speculators into the hands of more patient holders. There are no strong signs of capitulation, only consolidation.

Over the next couple of weeks, the reaction at 1.0 will be critical. Whether Bitcoin holds firm and builds momentum or slips toward deeper corrections will define the next phase. For now, Adler sees this as more a matter of time and balance than a warning of a cycle-ending reversal.

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BTC Testing Support Around Pivotal Level

Bitcoin continues to consolidate after a sharp retrace from its all-time high of $124K, now trading near $110,823. The daily chart shows BTC struggling to hold above the $110K support zone, which has become a key battleground for bulls and bears.

The 50-day SMA is trending around $116,600, while the 100-day SMA is near $111,600—levels that are now acting as resistance. Meanwhile, the 200-day SMA sits lower at approximately $101,000, marking the deeper structural support. A decisive loss of the $110K zone could accelerate selling pressure, potentially leading Bitcoin to test the 100K–107K support range, a critical confluence highlighted by analysts due to the alignment with the STH Realized Price.

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On the upside, Bitcoin must reclaim the $115K–$117K region to shift momentum back in favor of bulls. Failure to do so risks further consolidation and market uncertainty. The rejection at the $123K level last week highlighted strong overhead resistance, with sellers stepping in aggressively.

Featured image from Dall-E, chart from TradingView

Bitcoin surged by 5% (approximately $5,000) following Jerome Powell’s remarks at the Federal Reserve’s annual Jackson Hole Symposium, sparking fresh momentum in a bull market that has been quietly crushed since early 2024.

For most of this cycle, Bitcoin rise has been countering the headwinds of financial tightening. The Bull Run story began in June 2023 when BlackRock submitted a Spot Bitcoin ETF application. Since then, despite persistent inflation concerns, hiking rates and constant talk of “longer and higher,” Bitcoin has been shaking macro resistance and marching higher.

You could potentially mark a turning point today. Powell’s speech hinted at what the market was waiting for. After nearly two years of restrictive policy aimed at cooling inflation, the Fed chair acknowledged that conditions had changed. Inflation has cooled from its peak, slowing economic growth, and the strain of stricter monetary policy shows a crack in the system (see Recent Jobs).

For the first time in this cycle, Powell’s tone suggested that the Fed was ready to ease the grip.

The market response was immediate. Bitcoin ripped higher because traders were aware of what this meant (~$117,000 at this time of writing). Risk assets thrive when the central bank flashes, and Bitcoin, the most difficult money in existence, tends to be the fastest horse when the Fed runs through the cave into its own new reality.

This is more than just a short-term meeting. It could be an inflection point that turns into a stable, resilient bull market. The Fed’s attitude was a damper that remains in the advantages of Bitcoin. If Powell and FOMC signal a shift to accommodation, Bitcoin is standing to disproportionately benefit.

We’re still early. This bull market was born in the shadow of BlackRock’s ETF filing and matured by merciless skepticism and macrodrugs. Now, as policy winds begin to blow, the path forward may be similar to the previous parabolic stage of the Bitcoin cycle.

The message from Jackson Hole is clear: The Fed is forgiving. Bitcoin has already responded. And if history is a guide, real fireworks may be on the way.

This article is a take. The opinions expressed are entirely the authors and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.

However, the price of BTC appears to have returned to its sluggish pattern of action over the weekend, dropping to around $115,000 on Saturday, August 23. According to the latest on-chain data, the BTC price might be stuck in this phase of muted action in preparation for its next move.

BTC Market Activity Wanes — What’s Next For Price?

In a new post on social media platform X, Alphractal revealed that the Bitcoin market seems to be shaping up for the next big move in the coming weeks. This projection is based on the 30-Day Active Supply metric, which measures the number of unique coins that moved at least once over the past month.

The 30-Day Active Supply metric functions as a thermometer of the market interest in BTC, indicating both overheated and cool market conditions. When the metric rises, it suggests the inflow of fresh capital circulating and stronger investor activity.

Historically, increases in the Bitcoin 30-Day Active Supply have often coincided with price tops and bottoms, especially as investors are inclined to move their coins around during times of extreme greed or fear. Hence, a rise in the metric can be associated with a potential market reversal.

Meanwhile, a drop in the Bitcoin 30-Day Active Supply metric signals calmer market conditions with hesitation among investors, typically after periods of high stress or enthusiasm. When fewer coins are on the move and supply is relatively stable, a tightening effect takes place in the market.

According to data from Alphractal, the Active Supply indicator shows that the Bitcoin market has witnessed a cooldown in activity in recent weeks. The on-chain analytics firm added that the slowdown in the market activity could mean that the BTC price is preparing for the next big move.

With an improving macroeconomic environment, the Bitcoin price appears to be consolidating within a narrow range beneath its all-time high. Hence, a sudden spike in activity could see the market leader enter a new expansion phase, with the potential to hit new highs.

Bitcoin Price At A Glance

As of this writing, the price of BTC sits just above the $115,000 mark, reflecting an almost 2% decline in the past 24 hours. According to data from CoinGecko, the premier cryptocurrency is down by more than 2% in the last seven days.

Bitcoin is trading at a pivotal level after losing momentum from the $120,000 zone and slipping into deeper volatility. The price is now testing the $112,000 support level, a key zone for bulls to defend in order to avoid further bearish pressure. While the broader trend remains constructive in the long term, the short-term outlook has tilted toward weakness, with momentum indicators showing a leaning toward the downside.

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Analysts highlight this moment as a potential inflection point for the market. A strong defense of current levels could reset sentiment and allow Bitcoin to consolidate before another breakout attempt. However, failure to hold above $112K may trigger a sharper correction, opening the path toward deeper support levels.

Adding to the cautious tone, CryptoQuant’s head of research, Julio Moreno, shared new data showing that the CryptoQuant Bull Score Index has shifted into a neutral signal. This shift highlights that while selling pressure hasn’t fully taken over, the market is no longer in clear bullish territory. The coming days will be decisive in determining Bitcoin’s short-term trajectory.

Bitcoin Indicator Signals Caution

According to CryptoQuant’s head of research, Julio Moreno, Bitcoin’s Bull Score Index has shifted from a “Bullish Cooldown” phase to a “Neutral” phase. The index, which tracks overall market strength using a combination of trading flows, investor behavior, and derivatives data, declined from 70 to 50. This move signals that bullish momentum has weakened, leaving Bitcoin in a more balanced state between buyers and sellers.

Moreno noted that “for risk management purposes, further softening in the index indicates price could go lower.” This means that while the neutral zone doesn’t yet imply a confirmed downtrend, any additional deterioration could increase the probability of deeper corrections. Traders are therefore closely watching upcoming sessions, as price action around the $112K–$115K support zone will be critical in shaping short-term direction.

The broader context remains constructive. Bitcoin has been in a steady uptrend since 2023, a cycle that has already delivered massive gains and propelled the asset to new all-time highs above $124K earlier this month. Many analysts argue that the market is now in the final phase of this bull run, where volatility typically rises and investor sentiment becomes divided between expectations of continuation and warnings of exhaustion.

As the month comes to an end, global macroeconomic factors—including interest rate policies, institutional inflows, and liquidity conditions—will play a decisive role. If Bitcoin holds its support and fundamentals remain strong, this neutral phase may simply represent a healthy pause before the next upward move. Conversely, if weakness persists, the market could be signaling the start of a deeper consolidation phase.

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Price Action: Testing critical Support Level

Bitcoin is currently trading around $112,837, after a sharp decline from its all-time high near $123,217. The daily chart shows that BTC has slipped below the 50-day SMA ($116,158) and is now testing the 100-day SMA ($111,224) as support. This level has become a crucial line of defense for bulls.

The rejection from the $123K region highlights strong resistance overhead, which has led to several failed breakout attempts. The structure suggests that BTC has entered a consolidation phase, with the $111K–$116K zone serving as the immediate range. A decisive breakdown below $111K could open the way toward the 200-day SMA ($100,597), a level many analysts see as the final support for this cycle’s uptrend.

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Momentum indicators also align with weakening bullish pressure, as recent candles show lower highs and lower lows. However, holding above the 100-day moving average would strengthen the bull case, potentially setting up a rebound toward $118K and eventually retesting $123K.

Featured image from Dall-E, chart from TradingView

XRP’s performance against Bitcoin is returning to a familiar pattern, and the charts are not looking good as August comes to a close. On the daily time frame, the pair is orbiting 0.000025 BTC after failing to hold its push above 0.000030 BTC. 

The candles are below the midline of the Bollinger setup, and the bands are tighter, which often happens before a bigger move. Since XRP is on the lower end of that range, it suggests that the bias is on the downside.

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On the weekly chart, the pattern looks even clearer. The rally that started at the end of last year lifted XRP from its lowest point in years, but it topped out quickly once it hit the 0.000030 zone. 

Since then, weekly closes have been dropping, and it looks like they have hit a ceiling, similar to what we saw before. The rejection from the upper band leaves the pair in a position to support itself, and the next pocket that is easy to spot is closer to 0.000023 BTC.

The monthly view tells the longest story. XRP used to have ratios that put it in the same ballpark as Bitcoin — trading above 0.000100 BTC in 2017 and even hitting 0.000200 BTC at its peak. Those days are long gone. 

What’s next?

Every time there has been an attempt to recover, it has been cut down before crossing the long-standing ceiling around 0.000055 BTC. That barrier has not been broken in over five years, and the market has seen every test as a chance to sell into strength.

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When you put it all together, it looks like XRP is entering another period where it is going to lag behind Bitcoin. With BTC dominance still close to 59% and capital flow favoring the leading coin, altcoin pairs like XRP/BTC continue to show weakness.

The retracement has drawn attention to on-chain activity and investor behavior, particularly among long-term holders (LTHs). A CryptoQuant analyst has been monitoring realized profit and loss metrics to gauge whether the current cycle is approaching its peak or if more upside potential remains.  Data released by the analyst sheds light on how seasoned holders are reacting to Bitcoin’s latest rally.

Long-Term Holder Trends Across Market Cycles

CryptoQuant contributor PelinayPA shared an assessment of Bitcoin’s long-term holder realized profit and loss (RPL) metric, which tracks when investors who have held coins for extended periods decide to sell. According to the analyst, this indicator has historically been reliable in signaling both cycle tops and bottoms.

The analysis highlights key phases across multiple market cycles. During the 2017 bull market, a surge in LTH realized profits coincided with Bitcoin’s peak. By contrast, in the 2018–2019 bear market, profit realization slowed dramatically, while losses surfaced, reflecting the market bottom.

A similar pattern was observed in 2021, though the profit realization was more gradual, suggesting that selling pressure was spread across the market rather than concentrated in short bursts.

When Bitcoin entered the 2022–2023 downturn, realized losses increased significantly as the asset fell into the $15,000–$20,000 range. That period was characterized by panic selling among longer-term holders.

In the current market, however, PelinayPA notes that while profit-taking is visible, it remains moderate compared with past peaks. This indicates that, although selling is occurring, it has not yet reached the levels typically associated with a cycle top.

What the Current Data Suggests for Bitcoin

The current phase of moderate profit realization suggests caution but does not confirm that Bitcoin has fully topped out. PelinayPA explained that:

Historically, sharp increases in LTH profit realization (large green spikes) align with bull market tops. Current selling (mid-2025) is measured and gradual, which implies BTC may still be in the late stages of a bull cycle. If LTH selling accelerates, it could mark the next peak.

This measured approach by long-term holders could mean that the market retains some room for additional upward movement, provided selling pressure does not intensify.

At the same time, the data highlights that a shift toward heavier profit-taking would be an important warning signal for traders and institutions watching the market closely.

On-chain analytics firms frequently point to these long-term holder behaviors as leading indicators. While Bitcoin’s price action continues to consolidate below its record high, how these investors act in the coming weeks could set the tone for the next stage of the cycle.

For now, the data suggests that the rally has not yet reached conditions historically associated with a definitive top, but market participants are advised to watch profit realization closely.

Featured image created with DALL-E, Chart from TradingView

Khurram Dara, a former policy counsel at cryptocurrency exchange Coinbase, is considering a run for New York State Attorney General in 2026, aiming to replace Letitia James.

In comments to Cointelegraph, Dara said he had not yet decided whether to run for the state’s law enforcement office, but hinted that digital assets could play a role in his campaign if he chooses to do so.

With more than a year until the election, the Columbia Law School graduate has already posted to social media in support of Tornado Cash co-founder Roman Storm, found guilty in New York’s federal court in August, and gone after figures like Massachusetts Senator Elizabeth Warren, who has often connected crypto with illegal activities. 

“My platform would be focused on ending lawfare across the board, which certainly includes crypto,” said Dara. “We just had an election where crypto was very much on the ballot. And we won. But as the federal regulatory environment has shifted and settled, some state AGs believe it’s their role to fill a perceived ‘gap’ in federal policy […] effectively acting as national policymakers or regulators.”

The current New York attorney general, who assumed office in 2019, has taken several legal actions against crypto entities on behalf of affected New Yorkers, including Genesis, former Celsius CEO Alex Mashinsky, trading company NovaTech and KuCoin.

The US state, as a commerce hub in the country, is home to the headquarters of Gemini, Galaxy Digital, Chainalysis and others, making the AG position significant for how the office handles rules and enforcement concerning digital assets.

Related: New York AG urges Congress to bolster protections in crypto bills

“We are seeing the real dangers of unregulated cryptocurrency platforms with schemes like these,” said James, referring to allegations against NovaTech in June 2024. “New Yorkers can rest assured that we will use the tools at our disposal to crack down on crypto fraudsters.”

Cointelegraph reached out to James’ campaign for comment, but had not received a response at the time of publication. As of Wednesday, she had not announced that she plans to run for reelection in 2026.

Another Republican lawyer challenging a Democrat incumbent

Dara, a 36-year-old who works at the Council on Foreign Relations, has never held elected office. He was an intern in the New York State Senate in 2006, an intern for the office of Republican Thomas Reynolds in the US House of Representatives in 2008 and a law clerk for the US Attorney’s Office in 2012.

Should he decide to run as a Republican, he would not be the first candidate with experience litigating for crypto companies to challenge an established Democrat.

John Deaton, a lawyer who advocated for XRP (XRP) tokenholders in the US Securities and Exchange Commission’s lawsuit against Ripple Labs, ran against Warren in the 2024 election in Massachusetts. Warren defeated Deaton with about 74% of the vote.

“New York is where many people in crypto, tech and venture want to be. Incredible density of talent here,” said Dara. “I think the state should embrace that, rather than try to run from it […] the crypto community is not asking for special treatment or special policies that favor them. They just don’t want to be targeted unfairly with regulation by litigation.”

A Siena College poll from December 2024 reportedly gave James a 40% favorable rating among New Yorkers. As of August, the only other candidate to throw his hat into the ring for New York AG in 2026 is Republican Michael Henry, who lost to James in 2022 with about 45% of the vote.

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