Cryptocurrency growth: key factors and market prospects
Date: 2025-08-11 Author: Henry Casey Categories: CRYPTO PAYMENTS
Bitcoin began August under pressure, falling below $112,000 on August 3, but the trend changed to an upward trend on Monday. Over the week, the rate added 3.1%. An important driver was the signing of two laws by US President Donald Trump: the first expanded the investment opportunities of pension funds, allowing them to invest in cryptocurrencies, and the second obliged banks to provide services to clients regardless of their political or religious views. These measures opened access to multi-trillion capital to digital assets and made it easier for crypto companies to work with financial institutions.
Despite the growth, Bitcoin spot ETFs have shown an outflow of funds for the second week in a row, with more than $969 million leaving since the beginning of the month. At the government level, interest in BTC is also growing: Indonesian authorities are considering the possibility of including Bitcoin in national reserves, which could be a significant step for the Asian crypto market. Technical indicators point to a continuation of the upward trend, with support at $112,000 and resistance at $123,236. The Fear and Greed Index rose to 74, reflecting the prevalence of optimism among investors.
Ethereum showed more impressive dynamics, growing by 12.59% over the week. On August 8, the price reached $3,968.9, the maximum of the year. Network indicators also improved: on August 5, the number of transactions exceeded 1.87 million, which was the second result in the entire history of the network. The increase in activity is associated with large transfers of USDT and USDC stablecoins, as well as the participation of corporate investors. The amount of ETH staked has exceeded 36 million coins, which was facilitated by the SEC's statement that liquid staking in most cases is not subject to regulation as securities. Although a record outflow of funds from the ETH ETF ($465.06 million) was recorded on August 4, there was an inflow of capital in the following days. Technically, the asset remains in an uptrend with resistance at $4,100 and support around $3,355.9.
Ripple added just over 12%, returning to growth after falling below $3. The main push came on August 7, when the price increased by 11% in a day. The reason was the final point in a long-standing dispute with the SEC: the parties dropped mutual claims, although the $125 million fine imposed in 2023 remained in force. Investors perceived the outcome of the case as a major victory for the industry. An additional positive was the announcement of plans to acquire the Rail Financial payment service for $200 billion, which will expand Ripple's capabilities in the field of cryptocurrency payments integration.
Overall, the market is showing a confident recovery, and the key events of August may lay the foundation for further growth of crypto assets.
