Financial markets keep rallying, but a look beneath the surface paints a much riskier picture for the months ahead. Many investors now warn that Wall Street is ignoring growing cracks in the U.S. job market and real economy, a disconnect that has led to major trouble before.

Why Wall Street is so out of step

History shows a persistent pattern. As EndGame Macro pointed out, when job openings decline and unemployment ticks up, the stock market often keeps climbing, until reality hits.

In 2001, 2008, and again in 2020, stocks stayed buoyant on hopes of a Fed rescue or “new era” narratives, only to drop hard when weaker jobs data started to hit company earnings. Typically, this “catch-down” arrived within 6-12 months and:

“It wasn’t gentle; it came with a sharp drop and a recession.”

We’re seeing the same setup today. August’s jobs data was much softer than expected, with only 22,000 new jobs added and the unemployment rate rising to 4.3%.

Meanwhile, the S&P 500 remains near record highs. Wall Street optimism is built on expectations of imminent Fed rate cuts, easy liquidity, and relentless momentum from tech stocks.

Markets are “buying time” on the belief that central bankers will solve everything, but the labor market is already losing ground.

Companies are slowing hiring, and long-term unemployment is rising. Once weaker labor figures hit corporate earnings, Wall Street typically adjusts quickly, and that adjustment tends to be sharp.

This gap between Wall Street optimism and Main Street reality isn’t sustainable. When Fed rate cuts arrive, they might cushion the landing or even spark short-lived rallies.

Yet history shows that deteriorating jobs data wins out before long, dragging stock prices lower as analysts slash profit forecasts.

The risk: a sudden correction

Wall Street’s current rally is fueled by liquidity expectations, not strong fundamentals. In previous cycles, these disconnects have led to a painful correction when markets finally “catch down” to economic reality.

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Looking beyond equities, Bitcoin and the broader crypto markets have responded briskly to these macro signals. In early September, as weak jobs numbers lit up rate cut hopes, Bitcoin surged past $113,000.

With PPI data and CPI data confirming expectations this week, the odds of a rate cut at the next Federal Reserve meeting are over 90%, and the markets are pricing in the expectation of more liquidity in the system, with the Bitcoin price hitting over $116,000 at the time of writing and Ethereum over $4,700.

Digital assets trade the macro narrative; when the real economy slows and central banks ease, traders lean into risk and inflation hedges like Bitcoin.

If history repeats, a sudden equity correction could push more investors toward Bitcoin and crypto, both as a hedge and as speculative plays on monetary easing.

Weakening labor markets, more Fed stimulus, and persistent dollar risk provide a backdrop where digital assets become appealing alternatives to stocks.

Investor focus may shift from chasing tech stocks to seeking refuge in “hard money” like Bitcoin and gold if recession risks get real.

One thing is certain: Wall Street and Main Street are drifting apart. Stocks may stay aloft for a few more months, but softer job numbers and weak employment trends have a history of reversing market euphoria.

Traders betting on Fed support may not see trouble right away, but when the disconnect closes, it can happen fast.

Author

Tim Alper

Author

Tim Alper

About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked…

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Last updated: 

August 13, 2025

South Korea’s government is set to fast-track pro-business crypto reforms, including stablecoin regulations.

The South Korean newspaper Metro Seoul reported that the Presidential Committee on State Affairs announced its plans at a public briefing on August 13.

South Korea Crypto Reform Taking Shape

The committee spoke of a five-year plan for state administration, naming 123 state affairs-related tasks.

Among these tasks named were “the construction of a digital asset ecosystem” and “developing the domestic cryptoasset market.”

Both were identified as “key national tasks” for the administration, which took office in early June this year following the election of President Lee Jae-myung.

Lee has spoken repeatedly about his intention to build up the domestic crypto sector, with deregulation and stablecoin regulation high on his agenda.

The President appears keen to let domestic firms issue won-pegged stablecoins. Leading banks and IT companies have reacted by registering scores of stablecoin-related trademarks.

Others are hurriedly rolling out crypto-related business plans, aware that this may allow non-financial firms to develop advanced payment platforms.

However, one of President Lee’s key campaign pledges was left off the five-year plan, namely the dissolution of the Financial Services Commission (FSC).

The FSC is the nation’s top financial regulator. Its Financial Intelligence Unit (FIU) polices the country’s crypto exchanges, issuing operating permits and conducting periodic on-site inspections.

It also enforces anti-money laundering and terrorist financing protocols at the trading platforms.

FSC: Vociferous Critic No More?

In previous years, the FSC has been a vociferous critic of the crypto sector. But in recent years, as governments have relaxed their hardline stance to the industry, it has spoken in favor of reform.

Under the proposal, FSC’s supervisory duties were to transfer to the Financial Supervisory Service.

The FSC’s policy-related tasks were due to transfer to the Ministry of Strategy and Finance.

But Lee’s plan to scrap the FSC proved controversial, even among senior ministers. While his offices have yet to confirm that the President has shelved the policy, the five-year plan appeared to suggest the proposal may have moved to the back burner.

There was no mention of the regulatory reorganization move on the plan. And seven of the 123 tasks were assigned to the FSC.

The newspaper added that crypto reforms are a “key focus” for both the government and the National Assembly this year.

As such, reforms are “expected to gain momentum” in the weeks ahead, Metro Seoul wrote.

‘Time to Play Catch-up’

Political leaders are concerned that South Korea is being left behind. They note that over the past two years, the global crypto market has expanded by about 262%.

While crypto investment has spiked in the US, the European Union, and Japan, driven by institutionalization drives, the same cannot be said for Seoul. The outlet wrote:

“Delayed institutional reforms and a lack of legislation in South Korea have left the domestic cryptoasset market significantly lagging in terms of competitiveness.”

The FSC has prioritized its plan to allow corporations to buy and sell crypto. It also wants to tak a “more relaxed approach” to regulations.

The regulator has previously spoken of its intention to roll out crypto-related regulations before the end of this year.

However, skeptics say that a final decision on the fate of the FSC is yet to be taken. Talks to abolish the regulator “may resume in the future,” the newspaper explained.

Unnamed financial sector officials opined that the debate over the reorganization of the financial regulators would “continue until the end of the year.”

Earlier this month, the Seoul district of Gangnam announced it had recouped $144,057 in unpaid taxes in the first half of this year by seizing coins from tax evaders.

Joe Maring / Android Authority

An APK teardown helps predict features that may arrive on a service in the future based on work-in-progress code. However, it is possible that such predicted features may not make it to a public release.

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Indian crypto exchange WazirX has revealed the date for a creditor revote that, if passed, could pave the way for the long-awaited fund distribution.

WazirX Has Revealed The Creditor Revote Timeline

In a post on X, WazirX has shared an update on the situation regarding user crypto distribution. The exchange fell prey to an infamous hack one year ago, in which attackers linked with the North Korean Lazarus Group made away with almost $235 million in digital asset funds.

The platform closed its deposits and withdrawals in response to the attack, and to this day, it hasn’t been able to resume operations. This means that the rest of the original $500 million in user funds, around $265 million, are still stuck in limbo.

Recent developments, however, have finally set things in motion. In June, WazirX’s parent company, Zettai PTE LTD, a Singapore-based entity that was responsible for handling user crypto, went to the Singapore High Court with a distribution proposal that had overwhelming support from the creditors behind it.

This plan, however, had ended up finding rejection. Earlier this month, the company again went to court with a revised proposal, and this time, the court ended up giving it a green light. Alongside the announcement of the court hearing decision, WazirX had said another creditor vote will need to happen before the proposal can move forward.

Now, the exchange has formally announced a date for it: July 30th. This revote will remain live until August 6th. “If the requisite majority of creditors vote FOR the Scheme once again, the token distribution will start within 10 business days after the Scheme is effective, just as planned,” noted WazirX in the post.

This means that for the first time in this saga, users finally have a potential timeline for distribution. Alongside the distribution process, the exchange also plans to restart operations.

Nischal Shetty, CEO of WazirX, has also talked about the process in an X post. “A restart will also help us work towards generating profits and distributing it back to all creditors,” said Shetty.

The court had previously rejected the plan due to concerns about compliance with Singapore’s Financial Services and Markets Act (FSMA) and the involvement of Panama-based Zensui in the distribution process. The greenlight came as Zanmai Labs, the Indian company behind the exchange, was instead tasked with handling the funds.

It now remains to be seen whether creditors will vote in favor of the amended proposal, as they did for the last one, and potentially allow for an end to the long saga.

Bitcoin Has Seen A Sharp Profit-Taking Spree Recently

Bitcoin investors have participated in peak profit realization amounting to a whopping $3.3 billion recently, as CryptoQuant author Darkfrost has pointed out in an X post.

The trend in the 7-day MA of the Bitcoin Realized Profit | Source: @Darkfost_Coc on X

Since this selloff, Bitcoin has been locked in sideways movement, with its price still floating around the $118,300 mark today.

Looks like the price of the coin has been unable to find a direction | Source: BTCUSDT on TradingView

Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

DV8 has completed its first capital raise since undergoing a strategic shift toward becoming Southeast Asia’s first crypto treasury company, securing approximately THB 241 million (roughly $7.4 million), according to a filing released July 16.

The funding round closed with a 99.9% warrant exercise rate, marking a critical vote of confidence from existing shareholders in the firm’s long-term Bitcoin-native model.

The raise resulted in 301,491,057 new shares issued from the exercise of DV8-W2 warrants, at an exercise price of 0.80 baht per share. The remaining unexercised warrant total stood at just 345,930 units. DV8 reported a 38% growth in its cash treasury and a 13% increase in yield per share following the round.

Who is DV8?

DV8’s board has previously signaled its intention to replicate Strategy-style corporate finance strategies centered around Bitcoin accumulation and digital asset-backed value creation. The firm’s treasury model is aligned with the broader pivot led by a regional consortium of crypto-focused investors, including Metaplanet, Sora Ventures, Kliff Capital, and others, which recently acquired the Thai-listed electronics and retail company through a voluntary tender offer.

Metaplanet, the Tokyo-based public firm that emerged as one of the world’s largest corporate Bitcoin holders following its own treasury conversion, has become a guiding reference point for DV8’s transition. The Japanese company’s stock rose by over 11,000% across its treasury pivot, reinforcing the appeal of this strategy among firms exploring alternative financial models in Asia.

DV8’s transformation is also driven by a leadership overhaul led by Thai businessman Chatchaval Jiaravanon, known internationally for acquiring Fortune Magazine. His appointment as chairman was part of a broader board reshuffle aimed at repositioning DV8 as a crypto-financial infrastructure firm targeting Southeast Asian markets.

Recent moves by the consortium, such as the acquisition of Seoul-based SGA Co. to support new digital asset ventures, signal coordinated efforts to institutionalize crypto treasury adoption across the region. The investors have highlighted their interest in expanding into the Philippines, Vietnam, Indonesia, and Malaysia by partnering with execution-ready local firms.

The THB 241 million raise represents the first major liquidity infusion into DV8 since its crypto pivot and will be used to accelerate its operational transformation. According to the company, the capital sets the foundation for executing its long-term digital asset strategy and serves as a template for future funding rounds tied to treasury expansion.

Mentioned in this article

Bitcoin price started a fresh increase above the $108,500 zone. BTC is now up over 3% and showing positive signs above the $110,000 level.

• Bitcoin started a fresh increase above the $108,500 zone.
• The price is trading above $110,500 and the 100 hourly Simple moving average.
• There was a break above a bearish trend line with resistance at $108,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could continue to rise if it clears the $112,000 resistance zone.

Bitcoin Price Eyes More Gains

Bitcoin price started a fresh increase after it cleared the $108,500 resistance zone. BTC gained pace for a move above the $108,800 and $109,500 resistance.

Besides, there was a break above a bearish trend line with resistance at $108,800 on the hourly chart of the BTC/USD pair. The bulls even pumped the pair above the $110,000 resistance zone. It opened the doors for a move toward the $112,000 level.

A high was formed at $112,000 and the price is now consolidating gains. It tested the 23.6% Fib retracement level of the upward move from the $107,500 swing low to the $112,000 high.

Bitcoin is now trading above $109,500 and the 100 hourly Simple moving average. Immediate resistance on the upside is near the $111,600 level. The first key resistance is near the $112,000 level. The next resistance could be $112,500.

A close above the $112,500 resistance might send the price further higher. In the stated case, the price could rise and test the $115,000 resistance level. Any more gains might send the price toward the $116,000 level. The main target could be $118,000.

Downside Correction In BTC?

If Bitcoin fails to rise above the $112,000 resistance zone, it could start a downside correction. Immediate support is near the $110,800 level. The first major support is near the $109,750 level or the 50% Fib retracement level of the upward move from the $107,500 swing low to the $112,000 high.

The next support is now near the $109,200 zone. Any more losses might send the price toward the $108,500 support in the near term. The main support sits at $107,500, below which BTC might continue to move down.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $110,800, followed by $109,750.

Major Resistance Levels – $112,000 and $115,000.

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

About Author

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

June 26, 2025

The Financial Action Task Force has called on governments worldwide to step up enforcement of anti-money laundering standards in the crypto industry, warning that unchecked gaps in regulation could undermine global financial security.

In a report released Thursday from Paris, the global watchdog said jurisdictions have made progress since 2024 on implementing anti-money laundering and counter-terrorism financing frameworks for virtual assets and related service providers.

However, it noted that critical challenges remain, particularly around licensing, offshore oversight, and identifying entities involved in virtual asset services.

The FATF’s latest targeted update focused on Recommendation 15, which was expanded in 2019 to cover crypto markets.

Watchdog Flags Rising Stablecoin Abuse by Illicit Networks, Urges Regulatory Action

According to the report, 99 jurisdictions have either enacted or are preparing legislation aligned with the “Travel Rule,” a key mechanism to ensure transparency in cross-border crypto transfers. The FATF also released a new guide outlining best practices for supervising compliance with the rule.

The report flags mounting threats associated with the rise of stablecoins. It said their use by illicit actors, including North Korea-linked hackers, terror financiers and drug traffickers, has grown significantly. It warned that mass stablecoin adoption without coordinated regulation could increase global exposure to illicit finance.

North Korea’s Record Crypto Theft Exposes Weak Links in Global Enforcement

The update follows a series of alarming trends. So far this year, North Korea executed what the FATF described as the largest virtual asset theft in history, stealing $1.46b from exchange platform ByBit.

Only about 3.8% of the stolen funds has been recovered. This shows serious gaps in international asset tracing and recovery efforts.

Meanwhile, fraud and scams continue to trouble the crypto sector. The FATF cited industry estimates that around $51b in on-chain transactions last year were linked to such illicit activity. These cases point to increasingly sophisticated tactics by bad actors. As a result, governments are under growing pressure to enhance cooperation and improve asset seizure mechanisms.

In one example, the UK’s Operation Destabilise demonstrated how coordinated law enforcement can disrupt crypto-fueled criminal networks. The FATF said such efforts must be replicated globally and backed by more robust supervision and enforcement.

The watchdog acknowledged support from analytics firms including Chainalysis, Lukka, Merkle Science and TRM Labs in compiling the update. It also stressed that nearly 98% of the global virtual asset market is concentrated in jurisdictions within the FATF’s Global Network. Bringing these players into full compliance, it said, will be key to reducing worldwide risk.