Daily Crypto Signals: Bitcoin Under $119K After Treasury Secretary Rules Out New BTC Purchases, Ethereum Eyes $5K
Bitcoin retreated from its record high of $124,457 after US Treasury Secretary Scott Bessent confirmed the government won't make more
Quick overview
- Bitcoin retreated from its all-time high of $124,457 after US Treasury Secretary Scott Bessent announced no further government purchases, leading to $227 million in liquidations.
- Ethereum is gaining momentum, trading near $4,600, with a 64% chance of reaching $5,000 by the end of the month due to institutional interest and regulatory developments.
- The cryptocurrency market remains volatile, influenced by mixed signals from US officials regarding Bitcoin regulation and new licensing requirements for crypto wallet providers.
- Analysts predict Ethereum could reach between $10,000 and $15,000, supported by strong institutional accumulation and its significant role in real-world asset tokenization.
Bitcoin BTC/USD retreated from its record high of $124,457 after US Treasury Secretary Scott Bessent confirmed the government won’t make additional Bitcoin purchases for its strategic reserve, triggering $227 million in leveraged liquidations. Meanwhile, Ethereum ETH/USD continues its surge toward $5,000 with prediction markets showing 64% odds of hitting this target by month’s end, as institutional accumulation and regulatory developments fuel optimism for the second-largest cryptocurrency.
Crypto Market Developments
The cryptocurrency market was very unstable after US government officials gave mixed signals about Bitcoin regulation. President Trump’s executive order called for the creation of “budget-neutral strategies” to increase Bitcoin holdings. However, Treasury Secretary Bessent’s statements lowered hopes for the government’s immediate efforts to buy more Bitcoin. The market’s reaction showed that people are still quite sensitive to changes in regulations and the government’s stance on digital assets.
Google Play’s revelation of additional licensing requirements for crypto wallet providers in more than 15 places, including the US and EU, brought another level of regulation to market talks. The regulation does not apply to non-custodial wallets, though. This is a response to early worries from the crypto community that there will be more restrictions on self-custody solutions.
Bitcoin Dips After Touching ATH Sbove $124,000
Bitcoin’s wild price movement on Thursday showed how unstable cryptocurrency markets are right now, when prices are high. Bitcoin temporarily became the fifth-largest asset in the world, worth more than Google’s $2.4 trillion market cap. But it swiftly lost those gains once Treasury Secretary Bessent made it clear that the government was not buying Bitcoin. The $6,630 drop from peak to trough caused a lot of liquidations, but it didn’t have much of an effect on derivatives indicators. For example, the BTC futures annualized premium stayed in the neutral 5–10% band at 9%.
As traders process the latest rejection of the all-time high, the technical picture for Bitcoin is still muddled. Samson Mow, a long-time supporter of Bitcoin, came up with two possible scenarios: either Bitcoin keeps going up like “Godzilla,” taking up market attention and making altcoins plummet 30–40%, or the present “alt mania” peaks, producing a temporary selloff of Bitcoin before it goes back up. The 30-day delta skew in the Bitcoin options markets was 3%, which means that risk sentiment was balanced even though the price kept failing to stay above $120,000. Exchange statistics from Binance showed that Bitcoin reserves rose significantly to 579,000 BTC. This could mean that market makers are either taking profits or providing liquidity.
Ethereum Price Prediction: $5,000 Next Target?
Ethereum’s momentum keeps growing, even though the market as a whole is volatile. The cryptocurrency is trading near $4,600 and still has a lot of institutional interest. Polymarket’s prediction markets say there is a 64% chance that ETH will hit $5,000 by August 31st. 87% of bettors think that a new all-time high will happen before the end of the month. Analysts see Ethereum’s 55% share of the $25 billion market for real-world asset tokenization as a major reason why institutions are likely to adopt it.
Based on institutional accumulation and regulatory changes, Fundstrat research has set high price targets for Ethereum, with possible levels between $10,000 and $15,000. The study shows that companies are accumulating a lot of treasuries, with BitMine Immersion Technologies reportedly owning almost $5.5 billion worth of ETH. Technical analysts say that major support levels are at $4,631 and $4,000. For the upward trend to continue, these levels must be defended successfully. Analysts call the combination of ETF flows, corporate treasury demand, and Ethereum’s role in tokenization initiatives a “structural bid.” This could keep prices high throughout 2025.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save