A new working paper from the Federal Reserve Bank of Cleveland argues that the main reason cryptocurrencies don’t behave like other financial assets may have less to do with demographics and more to do with beliefs. According to the authors, Americans who own crypto—and those who plan to buy—often hold sharply different expectations about what digital assets will return, and those expectations help explain who participates in the market in the first place. The paper also presents experimental evidence suggesting that information about Bitcoin’s recent performance can meaningfully change what households say they want to hold, and can translate into higher actual purchases. If those findings are broadly applicable, they offer a mechanism for why crypto can stay volatile and why rallies can pull in new buyers in a reinforcing loop. Key takeaways Beliefs about future crypto returns explain participation better than standard demographics , according to a Cleveland Fed study using large ho...

A new working paper from researchers at the Federal Reserve Bank of Cleveland argues that much of crypto’s unusual behavior may come down to how people form beliefs about digital assets—more than standard demographic or financial factors. In their analysis of household survey data and a randomized information experiment, the authors find that expectations about future crypto returns strongly track who owns cryptocurrency, and that learning about recent Bitcoin performance can meaningfully change both planned allocations and actual buying. The work, titled “Do You Even Crypto, Bro? Cryptocurrencies in Household Finance” , also points to a mechanism that could help explain crypto’s persistent volatility: when prices rise, they may reinforce bullish expectations, drawing in additional buyers and further amplifying movements. Key takeaways Return expectations explain crypto ownership better than demographics. The paper finds expected returns and perceived risk account for more variation...

European regulators are weighing whether parts of crypto lending and DeFi should be brought closer to the same regulatory perimeter that already covers more conventional crypto activities. In a targeted consultation connected to the review of the Markets in Crypto Assets (MiCA) framework, the European Commission specifically flagged DeFi and crypto lending and borrowing as areas that were left outside the original rulebook. The debate is likely to intensify around “lending vaults” — on-chain structures that can funnel large pools of assets into credit markets while avoiding many of the hallmarks of a traditional lender. Their legal treatment, stakeholders say, has often relied on non-binding interpretations that the structures may fall outside MiCA and certain EU fund rules, leaving important questions unresolved about who, exactly, is responsible and what should be regulated. Key takeaways The European Commission’s MiCA review consultation asks stakeholders to address gaps that were...

Bitcoin and the wider crypto market rallied this week after a US Treasury move that effectively expanded long-dated bond buybacks without being labeled as quantitative easing. The shift reignited debate about whether ongoing liquidity measures—however framed—can support high-volatility assets such as Bitcoin and Ether. Bitcoin rose more than 23% toward $79,000 and Ether pushed above $2,400, according to the market moves described in the original reporting. The same theme has been spilling into corporate strategy across crypto, from treasury reallocations to mining expansions and even new avenues for regulated derivative trading. Key takeaways Standard Chartered’s Geoff Kendrick linked Bitcoin’s strength to expanded US long-end bond buybacks, flagging $65,500 as a key technical level. Metaplanet is extending its Bitcoin treasury play into the US by taking a controlling stake in Nasdaq-listed Super League, to be renamed Superplanet. Cypherpunk Technologies is launching Zcash mining...

Digital Asset, the firm behind the Canton Network, and the American Idea Foundation—an organization associated with former U.S. House Speaker Paul Ryan—say they are preparing a blockchain-based pilot to modernize how public benefits are distributed in the United States. The program, dubbed RISE, is designed to consolidate multiple state-administered benefits into scheduled payments, with rules that can adjust to changes in household income. The partners said the pilot is expected to begin in the first quarter of 2027, pending federal approvals. Key takeaways Digital Asset and the American Idea Foundation plan a benefits-distribution pilot using the Canton Network across three U.S. states. RISE is expected to bundle benefits into monthly or twice-monthly payments and apply spending categories such as food, child care, and cash. The system would automatically recalibrate benefit levels when household income changes. Participating agencies would reportedly be able to monitor payme...

U.S. courts and regulators continued to press crypto market participants on enforcement and insider-trading theories this week, with developments spanning the fallout from FTX, prediction-market litigation, and a newly unsealed indictment tied to an alleged $165 million Ponzi scheme. In parallel, prosecutors asked the court to keep alive a case against a Polymarket user accused of trading on nonpublic information. Key takeaways The CFTC issued consent orders imposing five-year trading bans on former Alameda Research CEO Caroline Ellison and FTX co-founder Zixiao “Gary” Wang. Alongside the trading bans, Ellison received a 10-year registration ban and Wang an eight-year registration ban, tied to their roles in the FTX collapse. In SDNY, U.S. prosecutors opposed a motion to dismiss filed by a soldier accused of making more than $400,000 on Polymarket using alleged nonpublic information. A Georgia judge ordered an indictment unsealed against Edward Zimbardi, who prosecutors allege ...

Bitget CEO Gracy Chen says Bitcoin’s recent strength may not be enough to break it out of a relatively familiar trading band for the rest of the year. Speaking on Cointelegraph’s Trade Secrets podcast, Chen argued that macroeconomic conditions—especially interest-rate expectations—are likely to remain a major driver of the asset’s direction. Chen cautioned that forecasting whether Bitcoin finishes 2024 above or below the $70,000 level is inherently uncertain. Her base case, however, points to Bitcoin staying “around the same range,” with a wide but defined margin of error. Key takeaways Chen expects Bitcoin to trade broadly near current levels through year-end, citing interest-rate and macroeconomic uncertainty. Higher interest rates could theoretically weigh on prices, reflecting Bitcoin’s growing linkage to traditional finance. She described a “more responsible” forecast: Bitcoin could end the year roughly $10,000 to $20,000 above or below current levels. Chen is skeptical t...

Billionaire investor Ray Dalio has renewed his call to buy Bitcoin and gold. He made the remarks as U.S. national debt crossed $40 trillion this week. Bitcoin, meanwhile, climbed toward $80,000 for the first time since May. Dalio Pushes Diversification Beyond Bonds Dalio shared his advice in a post on social media platform X. He told investors to diversify across asset classes and countries with strong balance sheets. He also urged them to avoid nations facing serious political or geopolitical conflict. The investor advised underweighting debt-based assets such as bonds. He recommended overweighting gold and holding a smaller allocation to Bitcoin instead. According to Dalio, this mix helps balance risk during periods of rising government debt. He added that holding between 10% and 15% of a portfolio in gold lowers overall risk. This guidance builds on views Dalio has expressed for years. His latest comments arrive as debt concerns intensify across financial markets. Bitcoin Rallies as...

US regulators have issued long trading and registration bans against two former FTX-linked executives as part of civil enforcement tied to the exchange’s collapse. In a separate SDNY matter, prosecutors are pushing back on a motion to dismiss in a case involving alleged insider betting on Polymarket. Taken together, the rulings and filings underscore how US oversight is extending beyond criminal proceedings—using civil instruments to restrict market access and to continue pursuing novel questions around how prediction-market “event contracts” should be treated under federal commodities law. Key takeaways The CFTC entered consent orders imposing five-year trading bans on Caroline Ellison and Zixiao “Gary” Wang, tied to their FTX roles. Those same orders also add registration bans—10 years for Ellison and eight years for Wang—separately from criminal outcomes. In SDNY, prosecutors opposed a motion to dismiss filed by a US soldier accused of more than $400,000 in alleged nonpublic-i...

Bitcoin held above $77,000 following the Wall Street open as gold joined the broader crypto upswing, pushing precious metals to multi-month highs. The move underscores how strongly investors are linking digital assets to traditional macro drivers, particularly US rate expectations and the outlook for government debt financing. Trading data cited by market commentary showed BTC cooling after briefly testing levels not seen since May 15, yet still up nearly 6% on the day. Gold tracked the risk-on momentum as well, rising to around $4,632 per ounce—its highest level since mid-May—with both assets also posting strong gains on a monthly view. Key takeaways Bitcoin consolidated above $77,000 after hitting its highest level since May 15, while gold reached a similar US-dollar strength milestone. Commentary from The Kobeissi Letter ties the cross-asset rally to inflation and US Treasury actions around debt buybacks. QCP Capital highlighted a divergence in how Treasuries, gold, and Bitcoi...

Digital-asset markets turned sharply risk-on this week, buoyed by a fresh dose of liquidity policy from Washington—framed not as quantitative easing, but as expanded Treasury buybacks in the long-dated bond segment. Bitcoin rose more than 23% toward the $79,000 area and Ether pushed above $2,400 as the market digested the implications for rates, dollar liquidity, and broader risk appetite. The move has also become a catalyst for business strategy across crypto. Standard Chartered reiterated a bullish year-end outlook for Bitcoin, while Metaplanet extended its Bitcoin treasury approach into the US through a deal to take control of a Nasdaq-listed company. In parallel, Cypherpunk Technologies broadened its mining operations into Zcash, and regulators signaled further attention on how “compute” assets could be packaged into futures markets. Key takeaways US Treasury action to at least double long-dated bond buybacks helped lift Bitcoin and Ether, reinforcing the “liquidity matters” narr...

Digital Asset, the company behind the Canton Network, is partnering with the American Idea Foundation—co-founded by former US House Speaker Paul Ryan—to pilot a blockchain-based program for administering state benefits in the United States. The initiative, branded RISE, is designed to modernize how eligibility rules and payment logic are applied when household circumstances change. According to the announcement, the pilot is planned to launch in the first quarter of 2027 and would bundle multiple benefits into monthly or twice-monthly payments. It would also incorporate spending rules for categories such as food, child care, and cash, while giving participating agencies visibility into payment status, balances, spending, and compliance information via Canton. Key takeaways RISE aims to use Canton to automate benefit distribution while adjusting support as household income changes. The system would group multiple benefits into periodic payments and apply spending constraints across ...

Crypto stocks finished the week on a strong upswing as Bitcoin reclaimed the upper end of its recent trading range. The latest leg of the rally coincided with a broader improvement in risk sentiment following an announcement from the US Treasury about doubling certain long-dated bond buybacks—an action intended to support liquidity in the Treasury market. That macro tailwind fed directly into shares linked to digital-asset demand and balance-sheet exposure. According to market data cited by Cointelegraph, Bitcoin rose above $79,000 during Friday’s trading, while major crypto-related equities posted double-digit gains. Key takeaways Bitcoin’s move above $79,000 helped lift publicly traded miners and crypto treasury companies, including Canaan, Strive and Metaplanet. US Treasury’s decision to double select long-dated bond buybacks was framed as liquidity support, boosting overall risk appetite. Crypto exchange and brokerage stocks such as Coinbase and Robinhood also advanced sharpl...

A Reuters survey found that 63% of respondents believe President Trump and his family profiting from crypto is inappropriate, while 32% believed it was appropriate. Breaking down the respondents further, 69% of Republicans considered the profits appropriate, while an overwhelming 92% of Democrats believed they were inappropriate. Survey Results The nationwide survey was conducted between August 14 and August 17 by Reuters and Ipsos, and interviewed 1,166 adults. The survey has a margin of error of around three percentage points. The survey reignited the ethical debate around President Trump and his family’s crypto investments while he is in office. Understandably, views were divided by political leanings, as Republican supporters found the earnings appropriate, while Democratic Party supporters called them inappropriate. “New Reuters/Ipsos poll: 69% of Americans, including 48% of Trump's own voters, say his business interests are influencing his presidential decisions. His crypto v...