From Green to Red: What Changed

DAILY MARKET OVERVIEW

From Recovery to Red

👋 Hey, Crypto Enthusiasts! Sunday and Monday gave us a bounce, but Tuesday brought the pain. Let’s break it down.

🟢 The market started the week strong.

Why? Rising expectations for a rate cut in September lit the fire.

According to the CME FedWatch Tool - which tracks futures pricing - the odds of a cut are now sitting at 88.2%.

That number isn’t pulled out of thin air. It’s based on how traders are betting in the Fed Funds Futures market. The prices of those bets show what rates people expect, and CME crunches the math from there.

So if rate cuts are coming...

🔻 Why is the Market Red Today?

One main reason: Trump.

He made several trade threats that worried investors:

• A 35% tariff on goods from the EU if they don’t "meet obligations"

• New tariffs coming on pharmaceuticals and semiconductors this week (could go as high as 250%)

• Promised to raise tariffs on India within 24 hours, calling them an unfair trade partner

This kind of talk makes markets nervous. And today, we’re seeing that play out with most assets in the red.

😬 Fed Chair News Disappoints Traders

There was also some talk that U.S. Secretary of the Treasury Scott Bessent, who is close to Trump, might become the next Fed Chair.

Many traders liked this idea because Bessent will likely support rate cuts.

But he just said he won’t take the job if offered.

That was a letdown for traders who were hoping for quicker rate cuts. Now, people are watching to see who Trump picks instead.

⚠️ Volatility Isn’t Going Away

Between interest rate hopes and rising trade tension, the market is still unstable. Things could swing in either direction quickly - so caution is key this month.

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SOCIAL SENTIMENT

Top Mindshare Coins

Due to ongoing market choppiness, we’re staying cautious and mostly on the sidelines. Here’s how the top mindshare coins are moving today:

🪙 Litecoin (LTC)

• One of the best performers today

• Pharmaceutical company MEI Pharma bought $100 million in LTC

• First-ever Litecoin Treasury, advised by Charlie Lee

• Has an ETF decision coming up in October

📉 Pump.fun

• The PUMP token struggled after launch

• Recently starting to find some stability

• Still holds strong mindshare, but revenue and volume are down only

🟢 ENA

• One of the top-performing projects over the past few weeks

• Benefiting from the stablecoin infrastructure narrative

• Currently correcting with the market but still showing relative strength

🔥 Hyperliquid (HYPE)

• Exchange is seeing rapid growth with $5 - $15 billion in daily volume.

• Generating over $1 billion in annual revenue

• Currently, the undisputed king of decentralized perpetual exchanges.

👇 Final Thoughts

This is not a great trading environment right now.

We’re watching closely, tracking strong setups, and focusing on preserving capital until the next real opportunity shows up.

Patience is key in this chop.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

CFTC Considers Spot Crypto Trading on Futures Exchanges
The CFTC is inviting public input on a plan to allow registered futures exchanges to host spot crypto trading under existing legal authority.

Coinbase’s Base Network Back Online After Outage
Base resumed block production after a brief halt affecting deposits, withdrawals, and token activity across the network.

Trump to Sign Executive Order Against Crypto Debanking
President Trump is expected to sign an executive order protecting crypto firms from debanking, with penalties for non-compliant banks.

Coinbase to Raise $2B in Convertible Notes
Coinbase plans to raise $2 billion through convertible notes, following a 25% drop in revenue and recent stock market declines.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

CoinBureau – BTC & ETH Price Predictions, OUR Portfolio Updates, Altcoin Season & More (05.08.2025 Summary)

Despite lots of bullish news (pro-crypto moves from the SEC, White House, and even ETF progress), Bitcoin and Ethereum are in a holding pattern.

• BTC: Not crashing, but not breaking out either.

• ETH: Keeps getting rejected near $4K – that’s become a key resistance level.

Guy and Nick still believe both could push higher, especially if inflation eases and a September rate cut (88% chance) happens.

📉 Altcoin Season – Is It Over?

Alts took a beating this past week – many dropped harder than BTC.
But CoinBureau doesn’t think the alt season is done.

• Expect more gains, but only for solid projects

• Narrative and quality matter more now

• Meme coins pumping off random hype? Probably not sustainable

📊 Portfolio Moves

Nick is focused on high-conviction plays:

• Holding Bitcoin and Hyperliquid

• Yield farming in the Hyperliquid ecosystem

• Watching Ethena and some AI projects

Guy added to a few strong positions:

• ENA (Stablecoin DeFi Platform)

• Mamo (AI money manager)

• Syrup (institutional lending via Maple Finance)

Both are also watching ETH and altcoins being bought by corporate treasury funds.

Jesse Eckel – My Game Plan for The Next 90 Days in Crypto (The Exact Strategy) (05.08.2025 Summary)

📆 Jesse’s Crypto Game Plan: August to October

1. August – historically bearish

• August is usually bad for Bitcoin – 9 of the last 13 years were red.

• Jesse thinks this month will be weak due to liquidity being drained from the system (government refilling its accounts = less money flowing).

• He expects some bounce after the recent dip, unless a major negative event happens (like a geopolitical crisis).

• His move: just holding, not selling.

2. September – pain before the pivot

• First half of September could be rough.

• A key rate decision from the Fed comes mid-September (16–17th).

• If a rate cut happens, it could flip market sentiment fast. Odds are increasing (88% chance currently).

• Jesse sees this as a buy-the-dip opportunity.

• He plans to double down on high-conviction altcoins if they drop (mentions AVO, RSC, and UNA).

3. October – the big bullish month

• October is historically the most bullish month for crypto.

• By then, the Fed may have cut rates, liquidity pressure may ease, and ETF approvals (especially for altcoins) could hit.

• Also expects momentum to build around the Clarity Act – a huge regulatory push that could be very bullish for altcoins.

💡 Jesse’s Big Picture Strategy

• He believes we're not in a 4-year cycle anymore – we’re starting the first 5-year crypto cycle.

• Because liquidity hasn't fully returned yet, he doesn’t think the market will top in late 2025 like past cycles.

• His prediction? A peak in late 2026

CRYPTO MEMES

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