Thomas Goldstein

Japan’s Finance Minister Katsunobu Kato has publicly acknowledged that cryptocurrencies should be considered as part of diversified investment portfolios.

Speaking at Web3 Conference WebX 2025 in Tokyo, Kato said crypto could be a legitimate asset class if proper rules are in place.

“While crypto assets carry the risk of high volatility, by establishing a proper investment environment, they can become an option for diversified investment,” Kato told attendees.

He emphasized that Japan will focus on building a sound trading environment for digital assets as adoption expands.

The remarks marked one of the most direct endorsements of crypto by a sitting Japanese finance minister.

Push for Tax Reform

Kato’s comments follow renewed calls from Japan’s Financial Services Agency (FSA) to overhaul crypto taxation rules.

Currently, crypto gains fall under “miscellaneous income” and are taxed at rates ranging from 15% to 56% depending on the income bracket.

The FSA has asked the government to reclassify crypto gains under a flat tax system similar to stocks, with a rate of around 20.315%.

Officials argue that this change would streamline tax reporting while encouraging wider adoption of cryptocurrencies within Japan’s financial system.

The proposal reflects Japan’s gradual shift toward a more crypto-friendly regulatory stance.

Growing Institutional Involvement

The momentum has also been reflected in corporate activity.

Bitcoin treasury firm Metaplanet has been upgraded from small-cap to mid-cap status under FTSE Russell’s Semi-Annual Review.

The adjustment means Metaplanet is now included in the FTSE Japan Index, boosting its visibility among investors.

At the same time, major Japanese financial groups are embracing blockchain partnerships.

SBI Group has announced new collaborations with Circle, Ripple, and Web3 developer Startale.

It also recently partnered with Chainlink to roll out crypto tools aimed at financial institutions across Asia.

Such moves point to a growing recognition of blockchain as a key driver in the country’s financial innovation.

Stablecoins on the Horizon

Japan’s regulatory framework is also preparing for the introduction of yen-backed stablecoins.

Reports suggest that the FSA could approve their issuance as early as this fall.

The development would mark a significant milestone in Japan’s digital asset strategy, allowing consumers and businesses to transact with blockchain-based tokens tied to the national currency.

Together, Kato’s remarks, proposed tax changes, and institutional adoption signal that Japan is positioning itself as a global hub for regulated crypto activity.

Bitcoin faced renewed downward pressure on Wednesday as the Wall Street session opened with heavy selling.

The leading cryptocurrency slipped below $113,000, extending losses from earlier in the week and threatening a move toward fresh local lows.

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was unable to maintain stability after a brief reclaim of the $113,000 mark.

Bid liquidity continued to thin across major exchanges.

Traders Point to Key Price Zones

According to data provider CoinGlass, $112,300 emerged as an immediate zone of interest.

Popular trader Daan Crypto Trades said Bitcoin has been testing liquidity across both sides of the range for the past six weeks.

“$BTC took out a bunch of liquidity on both sides for the past 6 weeks, as it ranged around this same price region,” he explained.

He pointed to $120,000 as the largest nearby liquidity cluster and identified $112,000 as the key support level to watch.

“These areas often act as local reversal zones and/or magnets when price gets close to them,” he added.

“Spoofy the Whale” Returns

Other analysts flagged potential manipulation in the order book.

Keith Alan, co-founder of Material Indicators, said recent movements suggest that large players may be using artificial bids to push prices lower.

Alan referred to the return of figures he dubbed “Spoofy the Whale” and the “Notorious B.I.D.” — entities known for shifting liquidity to influence market direction.

“Too soon to make any assumptions, but the influence on price direction will be the same,” he said.

“Bids moving lower invites price to move lower.”

Altcoins at Risk

Beyond Bitcoin, analysts warned of ripple effects across the altcoin market.

TheKingfisher, a well-followed commentator, said a prolonged slide in BTC could trigger disproportionate losses for smaller tokens.

“Still, we could see a gradual bleed, cascading block by block. While majors remain stable, a 5% BTC move could trigger 10–30% drops in alts,” he said.

Historical Parallels Offer Hope

Some traders see reasons for optimism despite the current decline.

Analyst Rekt Capital compared the latest correction to similar moments in prior bull cycles.

“One of the most positive things about this current pullback is that this same type of retrace took place at this same moment in the cycle in both 2017 and 2021,” he noted.

“In both 2017 and 2021, each of those retraces preceded upside to new All Time Highs.”

Focus Turns to Fed

The downturn also coincides with a key week for macroeconomic signals.

Minutes from the Federal Reserve’s July policy meeting were due to be released, and traders were awaiting Jerome Powell’s speech at Jackson Hole later in the week.

Last year, Powell used the symposium to signal policy shifts, and markets are closely watching for confirmation that interest rate cuts could be on the horizon.

With Bitcoin testing support zones and macro pressures looming, the next few days could prove decisive for market sentiment.

A senior U.S. Federal Reserve official has suggested that central bank employees should be allowed to hold small amounts of cryptocurrency to better understand the technology.

Michelle Bowman, the Fed’s Vice Chair for Supervision, made the remarks Tuesday at a blockchain event in Wyoming.

Push for practical experience

Bowman argued that firsthand exposure is crucial for staff tasked with regulating digital assets.

“We will soon be establishing a framework for supervising issuers of these assets,” she said.

“There’s no replacement for experimenting and understanding how that ownership and transfer process flows.”

Currently, Fed staff and their spouses are barred from holding crypto, ETFs tied to digital assets, or shares in crypto-related companies.

That restriction was put in place in 2022 after disclosures revealed unusual trading activity by several top officials during the early COVID-19 market turmoil.

Recruitment and expertise concerns

Bowman warned that strict prohibitions could make it harder for the Fed to attract and retain skilled examiners.

“These restrictions may be a barrier to recruiting and retaining examiners with the necessary expertise,” she said.

Allowing limited holdings, she argued, would help staff develop deeper insights into how digital assets function.

“I certainly wouldn’t trust someone to teach me to ski if they’d never put on skis,” Bowman added.

Call for regulatory flexibility

Bowman used the speech to urge regulators to adopt a more open approach toward emerging technologies.

She said regulators often display an “overly cautious mindset” and risk being left behind if they resist innovation.

“We must choose whether to embrace the change and help shape a framework that will be reliable and durable… or to stand still and allow new technology to bypass the traditional banking system altogether,” Bowman said.

“From a regulator’s perspective, the choice is clear.”

While acknowledging risks, she emphasized that many could be mitigated if regulators recognized the broader benefits of blockchain adoption.

Political backdrop

Bowman’s remarks reflect a broader shift in tone under the Trump administration.

Earlier this month, the Fed announced it would end a special supervision program for banks’ crypto activities, reversing a Biden-era initiative.

President Donald Trump has also directed banking regulators to investigate debanking claims raised by crypto firms and conservative groups.

Bowman did not specify which crypto products or how much exposure she believes staff should be permitted, but her remarks highlight growing recognition inside the Fed of the need for direct experience with digital assets.

Institutional demand for Ether (ETH) continues to accelerate, with two entities acquiring a combined $882 million worth of the cryptocurrency in recent days.

Leading the wave of purchases is BitMine Immersion Technology, a publicly listed Bitcoin mining firm. In a matter of hours, the company acquired 106,485 ETH, valued at $470.5 million. These acquisitions, tracked by blockchain analytics firm Lookonchain, bring BitMine’s total holdings to 1.29 million ETH—worth approximately $5.75 billion.

The transactions reveal that BitMine relied on large over-the-counter deals and transfers from major intermediaries, including Galaxy Digital, FalconX, and BitGo.

Whale Activity Adds to Market Momentum

Adding to the surge, an unidentified whale accumulated 92,899 ETH—around $412 million—over a four-day period. On-chain data shows the entity created three new wallets before withdrawing funds from Kraken, indicating a strategy to secure assets for long-term storage.

This aligns with a broader trend of whales aggressively accumulating Ether during its recent rally. Last week, one entity purchased $1.3 billion worth of ETH across multiple wallets, setting a new benchmark for whale accumulation.

Corporate Capital Raises Highlight Market Confidence

The institutional push has been supported by major fundraising efforts. BitMine Immersion Technology is in the process of raising $24.5 billion through an at-the-market stock offering, while SharpLink announced the completion of a $389 million raise via common shares.

These developments reflect the growing acceptance of Ether as a corporate treasury asset, following a similar trajectory once seen with Bitcoin.

Banks Boost Long-Term ETH Forecasts

The intensified institutional activity has prompted traditional financial institutions to raise their projections for Ether’s price. Standard Chartered recently lifted its 2025 target from $4,000 to $7,500.

The bank also provided a long-term roadmap, forecasting ETH to hit $12,000 by 2026, $18,000 by 2027, and $25,000 by 2028. Analysts cited stronger institutional adoption and stablecoin growth under clearer U.S. regulations as primary drivers.

Early Profit-Taking Emerges

Despite this bullish momentum, signs of profit-taking have started to appear. The whale group known as “7 Siblings” sold 19,461 ETH—worth $88.2 million—within a single day at an average price of $4,532.

The Ethereum Foundation also took part, selling 2,795 ETH worth approximately $12.7 million through two transactions earlier in the week.

While these moves signal caution at higher price levels, the broader institutional inflows suggest long-term confidence in Ether’s role as a key digital asset.

Thumzup Media Corporation has announced plans to dramatically expand its presence in the cryptocurrency sector following a $50 million funding round.

The firm, which began as a social media marketing business, is now pivoting toward large-scale crypto mining and targeted blockchain investments.

New Strategy and Investments

The company revealed it will use part of the funding from its $10-per-share offering to develop “state-of-the-art cryptocurrency mining infrastructure.”

It is currently engaging with mining technology providers to accelerate the buildout.

Thumzup also confirmed it now holds 19.1 Bitcoin, having first entered the crypto market in early January.

This move aligns with a trend among public companies seeking to bolster their share value through cryptocurrency holdings.

Trump Family Connection

A notable shareholder in Thumzup is Donald Trump Jr., who purchased 350,000 shares in July for nearly $3.3 million, according to regulatory filings.

The purchase adds to the Trump family’s growing presence in the crypto space.

Bitcoin Price Surge

Thumzup’s expansion comes as Bitcoin hit an all-time high of $124,128 before slightly cooling to $123,683.

Market optimism has traders eyeing a potential push above $125,000.

Thumzup has also outlined plans to diversify its holdings to include Dogecoin, Litecoin, Solana, XRP, Ether, and USDC, with approval to hold up to $250 million in crypto.

Stock Market Performance

Shares in Thumzup rose 7.62% in after-hours trading on Wednesday to $10.87, recovering from earlier losses.

The stock is up nearly 195% in 2025, with its latest all-time high of $15.46 recorded on August 8.

However, it faced a sharp drop earlier in the week after announcing a preferred stock offering, which was later amended.

Global Crypto Holdings Trend

Other firms are also increasing their Bitcoin reserves despite the recent price surge.

Sweden’s H100 Group recently bought 45.8 BTC, bringing its total to 809.1 BTC — the fourth-largest holding among European public companies.

The move cements the ongoing trend of corporate Bitcoin accumulation, even at record-high prices.

President Donald Trump signed a significant executive order on Thursday, allowing Americans to allocate cryptocurrencies and other alternative assets within their 401(k) retirement accounts and other defined-contribution plans.

The order directs the U.S. Department of Labor to reevaluate existing restrictions on investments such as digital assets, private equity, and real estate in these plans.

The change marks a shift in federal policy and has drawn both enthusiasm and concern from across the financial and crypto communities.

Trillions in Retirement Capital Now in Focus

As of Q1 2025, total U.S. retirement assets stood at $43.4 trillion, according to the Investment Company Institute and the Federal Reserve Board.

Of that, more than $12 trillion came from defined-contribution plans, including $8.7 trillion held in 401(k)s.

With such a massive capital base, even a small allocation to crypto could significantly impact the market.

Crypto Leaders Applaud the Decision

Matt Hougan, Chief Investment Officer at Bitwise, said the executive order could fundamentally reshape the crypto market.

He described the development as the beginning of a “slow, steady, consistent bid” from retirement savings that could lead to “higher returns and lower volatility.”

Hougan also emphasized the suitability of crypto in retirement portfolios, calling it “the best-performing asset class in the world over the past decade.”

Ji Hun Kim, CEO of the Crypto Council for Innovation (CCI), said the executive order signals crypto’s growing acceptance in mainstream finance.

“Americans should have the opportunity and freedom to include these investments within their retirement plans,” Kim stated.

He added that CCI appreciated the administration’s “continued commitment to clear policies” and making the U.S. “the crypto capital of the world.”

Infrastructure and Regulation Take Center Stage

Abdul Rafay Gadit, co-founder of ZIGChain, said the move paves the way for the infrastructure necessary to support tokenized investment products at scale.

He pointed out the increasing regulatory clarity under SEC Chairman Atkins, suggesting that a “unified framework” is starting to emerge.

However, not all reactions were without caution.

Michael Heinrich, CEO of 0G Labs, called the development a “watershed moment” for the industry.

Still, he warned of the dual nature of the shift, saying, “Done right, this could unlock trillions in retirement capital for Bitcoin and other compliant assets. Done poorly, it risks political and financial backlash.”

He stressed that critical implementation details—such as qualifying tokens, custody arrangements, and regulatory safeguards—would determine the success or failure of the initiative.

Bitcoin Seen as Early Beneficiary

Joshua Krüger of the dEURO Association believes Bitcoin will be the first asset to benefit from the change due to its institutional backing.

“Asset managers such as BlackRock, Fidelity and Franklin Templeton are already lined up with corresponding offerings,” he noted.

He said other cryptocurrencies may follow in the medium term, but only after establishing solid regulatory and technical foundations.

Tezos co-founder Arthur Breitman echoed these views, noting that the scale of the U.S. retirement market could help legitimize crypto as an asset class.

While supporting more options for savers, Breitman expressed concerns over misinformed investment choices.

He warned that private assets in retirement accounts often suffer from “high fees, hard-to-determine pricing, and manager manipulation to mask volatility.”

Critics Warn of Financial Risks

Peter Schiff, a long-time critic of crypto, voiced strong opposition to the move.

He argued that allowing crypto in 401(k)s could worsen the already serious U.S. retirement savings gap.

“Most Americans have saved far less than needed to have any hope of retirement,” Schiff posted on X.

“By allowing Americans to gamble what little retirement savings they have in their 401(k)s on Bitcoin and other cryptos, Trump just made this problem much worse.”

Bitcoin ended July 2025 with its most impressive monthly close to date, registering $115,800 on Coinbase, according to Cointelegraph Markets Pro and TradingView.

Despite some turbulence caused by macroeconomic developments, the monthly candle solidified Bitcoin’s momentum and marked the first time the cryptocurrency finished a month above the $115,000 threshold.

The last-minute pullback in Bitcoin’s price did little to undermine its bullish trajectory.

Markets were shaken after U.S. President Donald Trump unveiled a range of new tariffs, including increasing those on Canadian imports from 25% to 35%.

These moves impacted risk assets across the board, with the S&P 500 continuing its four-day losing streak to close at 6,339.

Market Sentiment Cools Slightly

The market’s risk-off reaction was also reflected in the Fear & Greed Index, which dipped by 10 points to settle at 65 — still within the “greed” zone.

Despite these headwinds, analysts remain upbeat about Bitcoin’s trajectory.

Crypto analyst Mags interpreted the recent dip to $115,000 as a bullish retest of the neckline in an inverse head-and-shoulders pattern, suggesting that the uptrend remains intact.

“The measured target of this pattern on the weekly chart is $172,000,” Mags posted on X.

“It’s just a matter of time before Bitcoin price goes vertical.”

Traders Eye August for Further Gains

Michaël van de Poppe, a well-known crypto trader and entrepreneur, echoed similar optimism about the coming months.

“The markets have started correcting, which means that it’s time to accumulate your next positions for the next run,” van de Poppe stated on X.

“Perhaps August is a month of stabilization, and we’ll go back up later in the month for Altcoins and Bitcoin.”

Price Range Remains in Bullish Territory

Bitcoin continues to trade within a tight band of $115,000 to $121,000, with data suggesting that a larger breakout remains likely.

CoinGlass reported that BTC finished July with an 8.13% gain, aligning with historical post-halving trends.

However, the month of August traditionally hasn’t been as favorable, with average returns of only 1.61%.

Post-Halving Augusts Tell a Different Story

Despite August’s usual reputation, Bitcoin has historically performed strongly during post-halving years.

In 2013, 2017, and 2021, Bitcoin saw respective August gains of 30%, 65%, and 14%.

Analyst Alpha Finder pointed this out on X, saying, “In 2017 and 2021, $BTC did massive returns in the month of August.”

Another user, Crypto B, added, “If history repeats itself, get ready for a strong August.”

While past performance is no guarantee of future results, the historical context provides further support to bullish sentiment heading into the second half of Q3.

Venture capitalist Tim Draper believes macroeconomic forces are reshaping Bitcoin’s traditional market behavior, particularly its four-year halving cycle.

Draper, a founding partner at Draper Associates, argued in a recent interview that the gradual decline of the U.S. dollar could dampen the effects of Bitcoin’s halving events—long known to trigger significant price movements in the crypto market.

“Between 10-20 years from now, the dollar will be extinct,” Draper told Cointelegraph.

“The world is changing, and we are watching it happen. We are right in the center of an anthropological leap forward,” he said.

Bitcoin’s Role as a Safe Haven

Draper pointed to growing investor interest in Bitcoin as a hedge against flawed monetary policies, rising inflation, global instability, and lack of trust in traditional financial institutions.

He described Bitcoin as an “escape valve” amid these pressures, noting that its appeal continues to grow due to its fixed supply and decentralized nature.

Shifting Focus from the Halving Cycle

Bitcoin halvings, which reduce the number of new coins entering circulation, have historically triggered bull markets.

However, Draper said that while the halving still has some influence, larger macroeconomic dynamics may now be more decisive in shaping Bitcoin’s trajectory.

“The halvings may have less of an effect if Bitcoin runs against the dollar the way it has, because it will probably go for a prolonged period,” Draper said.

“It will still be affected in some way by that four-year cycle, but I think the effect will dampen. I think there will be a macro driver that pushes Bitcoin along, and I think the macro driver will be a bigger deal than the halvings.”

Debate Over Bitcoin’s Maturity

The idea that Bitcoin is evolving into a macroeconomic asset is not universally accepted.

Xapo Bank CEO Seamus Rocca recently said that the four-year cycle is still valid, suggesting that halving events remain relevant.

Others believe that Bitcoin has matured past its early speculative cycles and is now more reactive to broader economic shifts.

Global Conditions Favoring Bitcoin

Draper’s perspective aligns with other experts who expect geopolitical and economic turbulence to benefit Bitcoin and other hard-money alternatives.

In February, Bitwise analyst Jeff Park suggested that ongoing inflation, protectionism, and the weakening U.S. dollar could drive global Bitcoin adoption.

Meanwhile, the U.S. government continues to push dollar-backed stablecoins to preserve the dollar’s dominance by increasing demand through blockchain integration.

Skepticism of Stablecoins’ Longevity

Despite this strategy, not everyone sees stablecoins as a permanent solution.

Bitcoin advocate Max Keiser criticized dollar-denominated stablecoins as a temporary fix, predicting they will eventually be outpaced by gold-backed tokens and Bitcoin itself.

As macroeconomic conditions change and digital currency becomes increasingly mainstream, Draper and others see the dollar’s future as uncertain—and Bitcoin’s as more integral to global finance.