Digital Wealth Alpha Of The Week #08

Good morning Digital Assets Investor,

There are decades where nothing happens and weeks where decades happen… Sentiment starts to pick up but bad news dampens the party, let’s dive in!

1. Week #08 Market Snapshot

Liquidity and on-chain activity start to pick up with select alts steadily gaining traction despite a backdrop of negative news that dampens the mood and impacts all markets. Bitcoin continues to detach itself from alts, a divergence that hints at shifting market dynamics. On-chain analysis suggests we may be on the brink of an entirely new type of alt season that departs from the familiar patterns of the past.

2. "Bitcoin is in the 'early stages' of a bull market" - Adam Back, the legend.

   Adam Back, co-founder and CEO of Blockstream, believes that we are in the early stages of a bull market, driven by significant inflows from ETFs, companies like Strategy, and retail investors, despite some consolidation due to profit-taking by midterm investors. He predicts Bitcoin could compete with gold, potentially drawing investments from gold ETFs into Bitcoin ETFs, especially if sovereign treasuries start adopting Bitcoin as a reserve asset, which could trigger a domino effect among nations.

   Institutional adoption is also growing, with about 30% of Bitcoin ETF buyers being institutions, and there is potential for further capital inflows from pension and mutual funds in both the current and future market cycles.

3. Alt season imminent - Liquidity flows and on-chain activity confirm
   

   Stablecoin supply hit a record $217.8B, boosting liquidity and altcoin trading volume, now 2.7x Bitcoin's. Unlike past cycles, there’s no direct BTC-to-alt rotation, as Bitcoin’s integration into ETFs and institutional systems has decoupled it from the broader crypto market. This time around, alts season will be more selective, with only a few coins gaining traction amid fierce competition for limited liquidity, signaling a fragmented and challenging market ahead will require better judgment from investors as to where to allocate their capital. Luckily we’re here to help.

4. Fire your asset manager! AI’s now advising Bitcoin.
   

   Test across several AI LLM’s show almost all recommend holding Bitcoin on a portfolio configuration. AI-powered hedge funds utilize machine learning and deep learning algorithms to analyze vast datasets in real time, enabling them to identify profitable trading opportunities and execute trades automatically. This approach has led to higher profitability and reduced risks compared to human traders

5. Franklin Templeton goes dual spot ETF - $EZPZ
   
   Franklin Templeton has introduced the Franklin Crypto Index ETF ($EZPZ), a dual spot Bitcoin and Ethereum exchange-traded fund listed on the Cboe BZX Exchange, offering investors exposure to the two largest cryptocurrencies by market cap. The fund is currently weighted 82% Bitcoin and 18% Ethereum, with plans to include more cryptocurrencies. With Coinbase serving as the custodian, the ETF charges a 0.19% sponsor fee, waived until August 31, 2025.

6. Biggest hack in crypto history courtesy of North Korea
   
   North Korea's state-sponsored Lazarus Group hacked this Friday cryptocurrency exchange Bybit, resulting in a historic loss of ~$1.4 billion marking the largest crypto exploit to date. The stolen funds, primarily Ethereum, were siphoned through a sophisticated attack involving the manipulation of a transaction from Bybit's cold wallet to a warm wallet by masking the signing interface and altering smart contract logic.

   Crypto detective, ZachXBT, with support from other blockchain intelligence firms, identified Lazarus Group as the perpetrators by analyzing test transactions and connected wallets. Bybit confirmed that client assets remain secure and fully backed, ensuring no impact on customer funds.

Meme of the week:

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-DWI

Disclaimer: This content is for information and education purposes only and it is not intended to serve as investment, financial, tax or legal advice. Do your own research before investing.