What happened yesterday in the crypto world?
Regulation and Policies
The U.S. Securities and Exchange Commission (SEC) has outlined its agenda to reform cryptocurrency policies and streamline Wall Street regulations. Meanwhile, the Ukrainian parliament approved a bill to legalize cryptocurrencies in its first reading, proposing an 18% income tax plus a 5% military contribution, with a reduced rate of 5% for conversions into fiat currency in the first year. Amendments are expected before the second reading and the designation of the competent authority. Pakistan is intensifying efforts to establish a structured regulatory framework for digital assets, with the State Bank of Pakistan planning to launch a pilot program for a central bank digital currency (CBDC).
(Source: marketscreener.com)
Market Trends and Forecasts
Despite a general decline in major cryptocurrencies, Bitcoin managed to maintain its price above $109,000, hovering around $110,900 on September 4. Ethereum hovered around $4,400. Although September has historically been a poor month for Bitcoin (with an average return of -3.33%) and Ethereum (-12.7%), some analysts suggest that 2025 could reverse this trend. This optimism is supported by the decline in Bitcoin reserves on exchanges, which have reached multi-year lows, indicating reduced selling pressure and a potential bullish supply shock. Exchange reserves have decreased, ETFs hold over $68 billion in inflows, and stablecoin balances have doubled to $54.9 billion, reflecting specific buyer positioning.
(Sources: beincrypto.com, marketscreener.com)
Bitcoin ETFs continued to see positive inflows (approximately +$300.5 million on September 3), while Ethereum ETFs saw outflows (approximately -$38.2 million on the same day). Goldman Sachs predicts that gold could reach $5,000 in 2025, and given the correlation, Bitcoin could follow a similar upward trend. Institutional adoption of Bitcoin is expected to increase rapidly through 2025 and 2026, with major banks integrating blockchain technology, boosting market confidence and potentially boosting the price of Bitcoin and the entire cryptocurrency sector. The Ethereum ecosystem is expected to remain central through late 2025 and into 2026, supporting a robust ecosystem of decentralized applications (dApps) through Layer-2 technologies that improve scalability and reduce costs, cementing its role in decentralized finance (DeFi) and non-fungible tokens (NFTs).
New Developments and Adoption
The WLFI cryptocurrency , linked to the Trump family through the World Liberty Financial platform, debuted on the markets, reaching a virtual valuation of over $4 billion. After an initial surge and significant sell-off, an urgent buyback was proposed to stabilize the price. The project aims to make the United States the "cryptocurrency capital of the world," although the associated wealth is currently "on paper" and subject to time constraints.
(Source: italia-informa.com)
Globally, India, the United States, and Pakistan remain leaders in cryptocurrency adoption. In Italy, by 2025, over 1,300 brick-and-mortar stores (including bars, hair salons, hotels, and taxis) will accept Bitcoin and other major cryptocurrencies such as Ethereum, Litecoin, and USD Coin as payment methods, with Rome, Milan, Naples, and Turin leading the way. Online, the Microsoft Store continues to accept cryptocurrency payments, and gift cards for platforms such as Amazon and eBay can be purchased with cryptocurrencies. Ripple has launched its US dollar-pegged stablecoin, Ripple USD (RLUSD), in Africa, thanks to new strategic partnerships with fintech companies such as Chipper Cash.
Mining Company Updates
Cipher Mining reported producing approximately 241 BTC as of August 2025 and selling approximately 42. MARA's Bitcoin production also saw a slight increase in the same month.
(Source: marketscreener.com)
Partnerships and Technological Innovations
Mastercard has expanded its partnership with Circle to facilitate USDC and EURC stablecoin payments in Eastern Europe, the Middle East, and Africa. The goal is to enable banks, fintechs, and terminal providers to process payments directly in stablecoins, with USDC's market capitalization rising to $69.3 billion, a 58% increase since the start of 2025.
(Source: financefeeds.com)
Bybit EU, the second-largest cryptocurrency exchange by trading volume, has officially launched the Bybit Card in the European Economic Area (EEA). New users who apply in September can benefit from an exclusive 20% cashback on eligible crypto-funded transactions in the first month, as well as an additional €5 bonus for their first transaction. Bitwise has listed five of its digital asset investment products, including the Bitwise Core Bitcoin ETP (BTC1), the Bitwise Ethereum Staking ETP (ET32), and the Bitwise Solana Staking ETP (BSOL), on the SIX Swiss Exchange, expanding investor access to the growing crypto market and strengthening its presence in Switzerland.
Impact of Federal Reserve Policies
The cryptocurrency community is anticipating a potential bull run following Jerome Powell's August 22nd hints about possible interest rate cuts by the Federal Reserve. While a mid-September cut could spark a rally, some experts remain skeptical of a guaranteed positive outcome for the cryptocurrency market and warn of potential increased volatility if the cuts fail to materialize.
