BTC Breaks Down, Treasury Companies Buying & ETFs Selling

BTC Breaks Down, Treasury Companies Buying & ETFs Selling

Bitcoin broke down below the 117K range, briefly touching 112K before recovering to 115K. Ethereum dropped by 8.5% but has since rebounded, trading near last Thursday’s daily close. Altcoins also flushed but more or less bounced back.

Hyperliquid recorded its highest-ever monthly trade volume in July, reflecting strong trader activity. Treasury companies continue to accumulate, with SharpLink purchasing 83,561 ETH for $304 million, pushing its total holdings to 521,939 ETH.

U.S. spot Ether ETFs saw their largest-ever daily outflow of $465 million on Monday, led by BlackRock’s iShares Ethereum Trust, signaling some short-term profit taking after a month of record-breaking inflows.

On the regulatory front, the U.S. SEC stated that certain liquid staking activities fall outside of securities laws, while President Trump is expected to sign an executive order threatening penalties for crypto debanking.

News

Table of Contents

Markets

Best Performers

Source: CoinMarketCap

Smaller gains this week compared to recent runs, as the market cooled off from recent highs.

MemeCore ($M) led the market with a +53.33% gain. MemeCore is a Layer 1 chain connecting creators and communities through memes and DApps. Its sharp rise highlights continued demand for meme-driven ecosystems.

Mantle ($MNT) followed with +21.21%. Its ecosystem saw a significant influx of capital last week—stablecoin market cap on Mantle rose to $653 million, up 22.85% week-over-week according to DeFiLlama.

Polygon ($POL) and DeXe ($DEXE) posted solid gains of +7.71% and +11.91% respectively. Polygon appears to be front-running a potential ETH bounce, supported by renewed interest in L2 infrastructure.

Litecoin ($LTC) closed the list at +6.94%, boosted by Nasdaq-listed MEI Pharma’s acquisition of 929,548 LTC tokens following a $100 million private placement.

Sector Performance

Source: Velo

Sector performance shows that all categories are down over the past week. However, Layer 2 (L2) bounced the strongest, recovering close to breakeven while others like AI and Meme sectors still remain over 10% down. Overall sentiment suggests a relief bounce after a steep drop earlier in the week, but most sectors are still in negative territory.

US Spot ETF Balances

US Bitcoin Spot ETFs

Source: Glassnode
Source: Coinglass

Total Assets Under Management (AUM) = $146.79 billion

Weekly Inflow = -$4.47 billion

US Ethereum Spot ETFs

Source: Glassnode

Total Assets Under Management (AUM) = $17.40 billion

Weekly Inflow = $830 million

*The data for BTC / ETH ETFs can vary, so we use Coinglass as our source.

Market Commentary

Bitcoin broke down from the 120K–117K range, briefly touched 112K, and is now trading around 115K. According to Glassnode, momentum has cooled across spot, futures, options, and ETF markets. A strong bullish case would require a decisive reclaim of the previous range to trap late shorters and push toward new ATHs, similar to ETH/USD’s recent weekly setup, but for now, focus has shifted to Ethereum.

Source: Tradingview

Ethereum remains under-owned throughout the rally. The recent dip saw limited dip-buying, with perp positioning reflecting caution. However, Ethereum’s fundamentals are heating up. July transaction volume hit $238B, a 70% increase from June and the highest since December 2021. It also set a new record with 46.67M transactions, surpassing the May 2021 peak by 3.6%. ETH closed July with a 60% monthly gain. Over the past two weeks, ETFs absorbed 1.6M ETH while more than 1M ETH was withdrawn from exchanges, indicating strong long-term accumulation. ETH is currently trading near $3,700, close to its range high.

Source: Tradingview

A major drag on the crypto market came from disappointing US July non-farm payrolls, which showed only +73k new jobs (vs. +104k expected). Prior months were sharply revised down: June from 147k to 14k and May from 139k to 19k—totaling -258k in revisions, the largest since Covid. This revealed deeper cracks in the labor market and added macro pressure.

Since last week:

  • S&P 500 is more or less unchanged
  • NASDAQ is up 0.41%
  • Gold is up 2.53%

The total crypto market cap stands at $3.77 trillion, down approximately 3.33% from $3.9 trillion last week. Bitcoin dominance remains steady at 60.8%, while the Fear & Greed Index sits at 62 (Greed).

Source: CoinMarketCap

What’s Next?

August tends to be a historically slow month for markets, with an average return of +1.66% but a median return of -7.49% (BTC). A key drag on crypto remains the weak U.S. July jobs report, which showed just 73,000 new jobs versus 104,000 expected. Prior months were also sharply revised down, highlighting deeper cracks in the labor market. While the Fed did not cut rates, markets are now pricing in a 79% chance of a 25 bps cut in September.

On the crypto front, treasury accumulation remains the dominant trend. Companies continue to steadily buy Bitcoin and Ethereum, though interest in altcoins is starting to rise.

Meanwhile, the U.S. government is still betting big on the crypto industry. In a sweeping endorsement of regulatory reform, analysts at Bernstein called the SEC’s new “Project Crypto” initiative the “boldest and most transformative crypto vision ever laid out by a sitting SEC chair.” Under the leadership of Paul Atkins, the agency is aiming to modernize securities regulation for the digital age — potentially reigniting innovation and reestablishing the U.S. as the global hub of blockchain finance.

Atkins unveiled Project Crypto in a landmark speech titled “American Leadership in the Digital Finance Revolution: Evolution of Capital Markets — From Buttonwood to Blockchain,” continuing the Trump administration’s push to make America the crypto capital of the world. Bernstein notes the plan will relax outdated rules that previously pushed crypto firms offshore and hampered growth.

Amid these developments, President Trump is rumored to be interviewing candidates for the next Fed Chair. He also announced a 50% tariff on India and continues to send mixed signals on U.S.–Russia relations.

Markets are operating in a more cautious mode, and it’s crucial to factor in the broader macroeconomic environment.

Meme of the Week

Vibing in Ibiza, knowing Orcabay won't rug you.

We hope you enjoyed this week’s edition of Diary of a Market Maker! Stay tuned for more insights, updates, and market-moving highlights as we continue to keep you informed and entertained in the ever-evolving world of crypto.

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Until next time, happy trading and stay ahead of the curve!

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, investment, or other professional advice. All opinions expressed herein are solely those of the author and do not represent the views or opinions of any entity with which the author may be associated. Investing in financial markets involves risk, including the potential loss of principal. Readers should perform their own research and consult with a licensed financial advisor before making any investment decisions. Past performance is not indicative of future results.

Jakob Brezigar

Jakob, an experienced specialist in the field of cryptocurrency market making, boasts an extensive international presence. With Orcabay, he has skillfully managed major operations and deals for a wide array of global stakeholders.​