Ethereum (ETH) is steadily inching close to the psychological $4,000 level, but the milestone remains elusive as selling pressure clouds bullish euphoria.
Nevertheless, the recent institutional frenzy for Ethereum has propelled the largest altcoin on market cap metrics to the 27th position among global assets.
Whales Are Selling Ethereum into Strength — But Why Now?
Ethereum’s market capitalization surged to $471 billion, overtaking major global corporations to rank 27th among all assets.
Meanwhile, amidst the surge, there is another force pulling in the opposite direction. Traders, whales, and watchdogs are raising red flags about major sell-offs and alleged market manipulation.
This counteractive force is coming right when ETH appears poised to reclaim its all-time high.
According to analysts and on-chain data, whales are exiting large positions, with the Binance exchange presenting as the common denominator.
Ted Pillows, an investor and KOL on X (Twitter), alleges that Binance is manipulating the price of Ethereum by dumping millions of ETH into it.
In a follow-up post, Ted claims that Binance is moving ETH to multiple market-making accounts, despite holding no known extra ETH beyond customer deposits.
“I hate to say it, but Binance is manipulating ETH and the entire altcoin market…How can they transfer so much Ethereum to these accounts when they have no extra ETH, only customer funds?” he wrote.
Customer and Binance Net Ethereum Balances. Source: Ted on X
These assertions suggest orchestrated sell pressure may be undercutting institutional demand. Meanwhile, Binance did not immediately respond to BeInCrypto’s request for comment.
The exchange has not publicly responded to the allegations at press time.
Major on-chain events support these concerns, unfolding with the recent Ethereum price climb.
One address, 0x219…C3c4F, sold 3,000 ETH worth $11.74 million, finally breaking even after holding since the 2021 bull run. On-chain analyst Ai reveals that the wallet had accumulated ETH at an average of $3,500 and endured a 70% drawdown before exiting at a $1.24 million profit.
Another whale, dormant for eight months, deposited 1,383 ETH tokens into MEXC, netting $4.32 million. The address still holds 1,384 ETH tokens valued at $5.39 million.
After an 8-month dormancy, a whale has deposited 1,383 $ETH worth 5.39M into #MEXC, making a profit of $4.32M.
The whale initially withdrew 2,768 $ETH worth $6.45M and still holds 1,384 $ETH worth $5.39M.
This highlights a broader pattern of profit-taking now that the Ethereum price approaches a psychologically critical level.
Not Everyone Buys the Binance Manipulation Theory
Notwithstanding, the largest red flag may be a multi-signature wallet (0x0cb…E07e4) that recently deposited 9,000 ETH, worth approximately $35 million, to the Kraken exchange.
Multi-sig wallet deposits $35 million in Ethereum to Kraken. Source: Analyst AI on X
The address is reportedly linked to high-frequency block builders Beaver Builder and Titan Builder. According to the analyst, it still holds over 18,000 ETH, worth more than $70 million, with most still staked.
On-chain analysts suggest this is not a coincidence, with the selling wave likely reflecting sophisticated players exiting into liquidity. If this is true, they may be using CEXs (centralized exchanges) like Binance and Kraken as exit ramps.
One whale trader has reportedly concluded a fourth major swing trade after offloading 5,000 ETH at $3,895, worth $19.47 million.
It is unclear whether these profits were booked in anticipation of a pullback or as part of larger market coordination.
While Ethereum’s technicals remain strong and institutional demand is rising, the shadow of coordinated selling now clouds the rally.
As of this writing, Ethereum was trading for $3,906. But the big question is whether the price is being held down just as it nears the $4,000 milestone.
Welcome to the Asia Pacific Morning Brief—your essential digest of overnight crypto developments shaping regional markets and global sentiment. This Monday’s edition is brought to you by Paul Kim. Grab a green tea and watch this space.
The crypto market in August is off to a challenging start. Last week, Bitcoin prices sharply fell, breaking below the $117,000–$120,000 range established since July 11. Bitcoin dropped nearly 4% over the week, with some altcoins plunging over 15%.
First by Powell, Second by NFP
Last week’s decline unfolded in two main phases. One cause was the remarks of Federal Reserve Chair Jerome Powell following the July Federal Open Market Committee (FOMC) meeting held on Wednesday. The market had been highly anticipating a rate cut in September after the pause in July, but Powell poured cold water on these expectations.
Powell stated that the possibility of a September rate cut is still uncertain. While acknowledging signs of a potential recession, he explained that it is reasonable to keep rates steady as the inflationary effects of tariffs are yet to be confirmed.
He also emphasized that the labor market remains solid and near balance, urging the focus to shift from employment to inflation risks.
Interestingly, there was strong internal opposition within the Fed to this view. Fed Governor Christopher Waller pointed out that private sector employment growth has slowed significantly. Despite surface-level health, data revisions reveal weakness, prompting calls for preemptive rate cuts.
For now, Powell’s perspective aligns with the majority within the Fed, and the market has to temper its expectations for a September rate cut. Bitcoin prices fell to $115,800.
Bitcoin Price. Source: CoinMarketCap
The nonfarm payroll (NFP) data was released on August 1, resulting in the second decline. The July NFP estimate among Wall Street analysts was around 110,000, but the actual figure came in at 73,000. This contradicts Powell’s optimistic outlook and indicates a significant deterioration in the US labor market.
More concerning was the major downward revision of May and June data by 258,000 jobs. The initially strong June NFP figure of 147,000 was mostly a statistical illusion. The US Bureau of Labor Statistics revised June’s figure to 14,000 and May’s to 19,000—the lowest in five years.
The official unemployment rate matched expectations at 4.2%, but the broader U-6 unemployment rate hit 7.9%, the highest since the COVID-19 crisis. The number of long-term unemployed and those seeking work for over 27 weeks also worsened. These indicators of a sharp economic downturn and labor market weakness caused a plunge in the US stock market. Bitcoin also retreated to around $112,000 on that day.
Macro Downturn Drags Corporate Buying and ETFs, Which Once Led the Rise
Throughout the week, major macroeconomic trends seemed to drag the crypto industry along. The inflows into spot-listed ETFs that had driven Bitcoin and Ethereum prices during July diminished significantly after July 30. On August 1, spot ETFs recorded their biggest single-day outflow since February this year.
Ethereum-buying companies, which were major drivers behind Ethereum’s price rise, also faltered. The week started positively: Sharplink Gaming confidently announced an additional $296 million Ethereum purchase and staking, while Bitmine, led by CEO Tom Lee, claimed Ethereum’s intrinsic value is $60,000.
Standard Chartered Bank forecasted that companies buying Ethereum would hold about 10% of the total supply, noting a strategic accumulation that has surpassed $10 billion—a 50-fold increase in just four months.
However, these firms were powerless against the price crash later in the week. Ethereum fell 7.2%, with top Ethereum-holding companies Sharplink Gaming (-30.80%) and Bitmine (-23.16%) stocks also plummeting.
Given this situation, bearish sentiment naturally spread. Crypto influencer Arthur Hayes, founder of BitMEX, made bearish predictions for major cryptocurrencies. He predicted Bitcoin could fall to $100,000 and Ethereum to $3,000. Hayes cited upcoming US tariff legislation and slow global credit expansion as key factors.
Over the weekend, on-chain data caught attention with a concerning Ethereum metric. The Ethereum holder accumulation ratio dropped to 27.57%—the lowest in two months. This indicates investors are no longer aggressively increasing their ETH holdings.
US Stock Market Is the Key
The warm momentum from July disappeared suddenly amid this sharp decline. What lies ahead for crypto prices this week? The key will be whether the US stock market can rebound from the shock of the NFP data revision.
The US Employment Statistics Bureau has a history of revising annual nonfarm payroll data by over 800,000 jobs last year, revealing that these jobs never actually existed despite prior reports for the previous year. However, even that revelation did not trigger significant stock market volatility.
The steep drop last Friday was partly due to the recent US stock market hitting new highs smoothly; the weakening employment figures provided an opportune trigger for correction. If the US stock market recovers without further corrections, the crypto market is likely to bounce back as well.
However, if further corrections continue, Powell’s comments denying a September rate cut despite strong US employment will become crucial. CME Group’s FedWatch tool already forecasts three rate cuts within the year.
No major macroeconomic issues are expected this week, but US employment remains a critical focus. The Conference Board will release its Employment Trends Index on Monday, and this data could significantly impact US stock markets.
We wish our readers successful investments this week as well.
Conor McGregor, the former UFC champion, has entered the crypto scene with the launch of a new memecoin dubbed REAL.
Despite the star power behind it, REAL is off to a sluggish start, struggling to attract investor interest in a memecoin market that is still reeling from recent scandals.
Conor McGregor’s REAL Token Raises Just $218,000
Announced on April 5, McGregor unveiled his plans to disrupt the digital asset space, claiming he had already changed the fight, whiskey, and stout industries.
“I changed the FIGHT game. I changed the WHISKEY game. I changed the STOUT game. Now it’s time to change the CRYPTO game. This is just the beginning. This is REAL,” McGregor announced on X.
According to the project’s website, the team opted for a sealed-bid auction model to launch the token, aiming to prevent bot manipulation and create fairer pricing.
Under this system, participants submitted bids using USDC. Successful bidders would receive REAL tokens based on a clearing price, while those who didn’t meet the mark would be refunded.
“The auction will be open for 28 hours, after which a single clearing price will be determined. Tokens will be locked for 12 hours after auction close to facilitate a snipe-free deployment of on-chain liquidity. Proceeds from the auction will seed this pool and fund the DAO treasury,” the project added.
However, the community’s response to the project has been underwhelming. The team aimed to raise $3.6 million, with a minimum threshold of $1 million. As of press time, the auction has raised just $218,000, far below expectations.
Several issues appear to be fueling investor hesitation. Critics have called out the token’s short unlock window, warning that it creates ideal conditions for rapid sell-offs.
Others raised concerns about the project’s use of third-party logos on its site, hinting at misleading promotional tactics.
Moreover, community feedback about the project has also been overwhelmingly negative. Many users labeled the tokenomics as flawed and accused the team of focusing on short-term hype rather than sustainable value.
“If you’re buying REAL token, prepare to get dumped on. The tokenomics are absolute trash, and the unlock cliff is only 12 hours. You’re essentially giving your money away if you buy this token,” Crypto Rug Muncher wrote.
Conor McGregor’s REAL Token Tokenomics. Source: REAL Website
“Celebrity coins like McGregor’s REAL and Trumps’ are toxic for crypto! Driven by hype, they lack utility, $Trump crashed 81%, $Melania 92%. These [tokens] hurt investors and crypto’s reputation. We need utility tokens for real value and growth,” Maragkos Petros, the founder of MetadudesX said on social media platform X.
According to Johnny Garcia, Managing Director of Institutional Growth and Capital Markets at the VeChain Foundation, Texas will likely become the next state to establish a strategic Bitcoin reserve after New Hampshire.
In an exclusive interview with BeInCrypto, Garcia explained that states with pro-innovation leadership are more inclined to follow New Hampshire’s example. Meanwhile, others may adopt a more cautious, wait-and-see approach.
Why States Like Texas Are More Likely to Follow New Hampshire’s Bitcoin Reserve Lead
The VeChain executive described New Hampshire’s passage of House Bill 302 as a ‘landmark moment’ for digital assets. He stated that the development highlights Bitcoin’s growing recognition as a strategic financial instrument.
It also lays the groundwork to encourage wider blockchain adoption by normalizing digital assets in public portfolios.
“Momentum has been gathering at the State level since the presidential inauguration, and have commented before, there is a sea change taking place in the minds of State representatives across the general perception of Bitcoin [and other crypto assets] in the US,” Garcia told BeInCrypto.
Importantly, he believes the move could prompt the states already considering related legislation to accelerate their efforts so they don’t fall behind. The latest data from Bitcoin Laws shows that as of May 2025, 37 digital asset-related bills are active in 20 states.
Live Bitcoin Reserve Bills Across 20 States. Source: Bitcoin Laws
However, Garcia emphasized that the success of these bills depends on various factors. These include a state’s political climate, economic priorities, and risk tolerance.
“States with pro-innovation leadership, like Texas or Utah, are more likely to follow New Hampshire’s lead in short order, while others may wait to see how things play out for N.H,” he added.
With Texas now in the spotlight, there is strong optimism that similar legislation will be signed into law. Republican Governor Greg Abbott has expressed a favorable outlook toward the industry. The Texas Legislative session ends on June 2, so the decision could come any day now.
This trend highlights a clear difference of opinion between Democrats and Republicans regarding investments in digital asset reserves, a divide Garcia also acknowledges.
“These differences are nothing new, and I chalk them up to deeper-rooted perspectives, just like there are conservatives and liberals, or risk takers and those who like to play things safe. Some may try to tease out those groups and label people on one side as Democratic and the other as Republican, but I think that is too simplistic,” he said.
He acknowledged that bridging this gap poses a significant, but surmountable, challenge. The executive noted that increased cooperation can be fostered through education and a deeper understanding of the technology’s potential benefits and risks.
According to Garcia, the focus should be on identifying shared goals, such as leveraging blockchain to improve efficiency and transparency in government operations—an approach that could lay the groundwork for bipartisan collaboration.
“The ultimate goal would be to develop a thoughtful and balanced approach to digital assets that can benefit all Americans, regardless of political affiliation. This can be achieved by moving the conversation beyond partisan lines and focusing on the long-term economic and technological implications,” Garcia disclosed to BeInCrypto.
How Will State-Level Interest Impact Broader Crypto Adoption?
Whether Democrats and Republicans will ever fully agree on digital assets remains uncertain. Despite this, the introduction of bills and increased discussions at the state level signal growing interest and momentum.
Garcia said this shift marks a fundamental change in how public finance views blockchain assets, recognizing them as tools for innovation and resilience.
“It, combined with the strength of Bitcoin, has rekindled the discussion around ‘digital gold’ and could help reshape public finance by introducing decentralized, censorship-resistant assets into traditional portfolios,” he commented.
It normalizes digital assets as a strategic asset class, not just speculative. This encourages more institutional and enterprise participation.
This also pushes policymakers and the public to better understand digital assets’ risks and benefits, which can lead to clearer and better regulations.
It helps build infrastructure like regulated custody and on-chain auditability. This makes blockchain adoption easier for businesses.
He also said that while accessibility remains a challenge for mainstream adoption, state-backed initiatives could foster partnerships between the public and private sectors. This collaboration could lead to the development of user-friendly wallets, custody services, and decentralized finance platforms, expanding access for both retail and institutional users.
“This aligns with our focus at VeChain on scalable, enterprise-grade blockchain solutions, and we anticipate that state-level adoption will create a ripple effect, accelerating the integration of digital assets into both public and private sectors,” Garcia remarked.
The Balance Between Opportunity and Risk in State Crypto Holdings
While the benefits inspire optimism, the reserves carry several implications for a common taxpayer. Garcia explained that supporters believe state investments could boost long-term returns and diversify away from inflation-prone assets, potentially strengthening the state’s finances and benefiting taxpayers. Yet, he claimed,
“We have not yet reached the point where Bitcoin has achieved a greater level of stability, and if it sees a similar pullback compared to previous cycles, that would greatly diminish interest in setting up reserves and could cost taxpayers money.”
Garcia warned that significant price drops could lead to losses in the state’s reserves. Thus, if the allocation is too large or poorly managed, this could potentially threaten financial stability.
“This could, in theory, lead to pressure for tax policy changes to offset those losses, although this would depend heavily on the scale of the investment and the state’s overall financial health,” he mentioned to BeInCrypto.
Garcia advocated educating taxpayers about both the benefits and risks to maintain public trust. He emphasized that the long-term impact will depend on the responsible and strategic management of these reserves.
Beyond tax concerns, Garcia detailed several challenges states may face when implementing crypto reserves.
“The volatility of digital assets remains the biggest challenge facing states looking to implement reserves, as managing this volatility within a public treasury framework will require careful consideration and potentially sophisticated risk management strategies,” he commented.
Garcia also mentioned that educating lawmakers and the public is crucial for wider acceptance, as many state officials lack expertise in digital asset management and will need training or specialists. He underlined that federal regulatory uncertainty adds complexity. Therefore, clear rules on custody and reporting are necessary.
According to Garcia, transparency and strong cybersecurity measures are other key factors essential to ensuring the long-term success of these initiatives.
The Road to a National Strategic Bitcoin Reserve
Meanwhile, Garcia pointed out that concerns over taxes and market volatility are why President Trump’s Bitcoin reserve does not include provisions for investing the country’s funds. Instead, it focuses on using forfeited assets to build the stockpile.
The SBR would involve acquiring 1 million Bitcoins over five years and holding them for at least 20 years. Garcia declared that allowing direct Bitcoin investments would depend on shifting political and economic factors.
“Allowing for such purchases will require bipartisan support in both the House and the Senate, along with the President’s signature, but as the recent stall for the GENIUS Act shows, lawmakers are far from being on the same page,” the executive shared with BeInCrypto.
Garcia believes that a clear regulatory framework for crypto and a plan to incorporate Bitcoin into a strategic reserve will eventually be established by law. Nonetheless, the timeline and specific details of these bills remain ‘challenging to predict.’
