From July 21 to 25, the virtual asset market showed mixed trends. Although the price of Bitcoin surpassed $124,000, setting a new all-time high, profit-taking sales emerged, leading to a correction phase. In contrast, Ethereum, the leader among altcoins, experienced a rising trend with net buying primarily from institutional investors. Experts forecast that the bullish trend for Ethereum is likely to continue for a while, driven by expectations for the institutionalization of stablecoins.
As of 4:30 p.m. on the 25th, the price of Bitcoin was recorded at $115,644. This represents a decline of 1.97% from 24 hours ago and 3.45% from a week ago. Following the breakthrough of its peak, Bitcoin has experienced a bearish transition due to a surge in profit-taking sales. Additionally, there was a net selling pressure in Bitcoin Exchange-Traded Funds (ETFs) impacting this trend.
In contrast, the price of Ethereum at around the same time was $3,628, reflecting a 1.69% increase from 24 hours earlier, continuing its rebound. This was influenced by net buying of Ethereum spot ETFs driven by institutional investors. In the past week, there was a net influx of $1.796 billion into Ethereum ETFs. Furthermore, Conflux (CFX) rose by 58.3%, Tezos (XTZ) increased by 26.1%, and Fuzzy Penguin (PENGU) saw a 22.2% rise, showing strong buying interest in certain themes.
While many virtual assets, including Bitcoin, are showing weakness, the market assesses that investor sentiment is not expected to be affected as trade uncertainties from the U.S. ease. Reports have emerged that the U.S. is nearing a trade agreement with the European Union (EU) following Japan, leading the Standard & Poor's 500 index and the Nasdaq 100 index to reach new all-time highs.
Hwang Hyo-jun, a researcher at Xangle, noted, "Easing trade risks are favorable for the virtual asset market in the medium to long term," while analyzing that, "the short-term trends are diverging due to the differences in supply and demand structures between Bitcoin and Ethereum." He further stated, "The expectation of stablecoin institutionalization and the buying trend from institutions combined suggest a strong possibility of maintaining a bullish trend for Ethereum in the short term."
◇ Card companies form task force for proactive response to stablecoins
As the introduction of won stablecoins is imminent, card companies in Korea are taking proactive measures. Previously, the Korea Credit Finance Association officially launched a task force (TF) with eight major card companies, including Shinhan, Samsung, KB Kookmin, Hyundai, Lotte, Woori, Hana, and BC Card, and will hold its first meeting.
The task force plans to discuss the impact of stablecoin legislation on the card industry, defining the role of card companies, and institutional responses through expanded concurrent or subsidiary services. Card companies feel a sense of crisis that consumers and merchants might use stablecoins for payments instead of cards as stablecoins become more widespread. The task force is expected to convey its position to financial authorities, requesting permission to participate in stablecoin-related work.
Some card companies have already completed trademark applications for won stablecoins and are looking into the potential for service expansion. The card industry sees this not merely as a simple response but as a strategic move to secure a leading position in a new payment system.
◇ Is Ethereum a strategic asset?
Since the beginning of this year, many corporations are adopting not only Bitcoin but also Ethereum as a strategic asset. GameSquare, a company listed on the Nasdaq in the U.S., recently raised $90 million to purchase 10,170 Ethereum. Additionally, it expanded its asset management limit to $250 million, focusing on revenue strategies involving non-fungible tokens (NFTs) based on Ethereum.
Bitmine Immersion Technologies is pursuing a large-scale accumulation strategy aimed at securing 5% of the total Ethereum supply. The company currently holds 560,000 Ethereum, worth over $2 billion as of that day. Additionally, Sharplink Gaming and Bit Digital are also incorporating hundreds of millions of dollars worth of Ethereum into their financial strategies.
The virtual asset industry evaluates that Ethereum has established itself as a key asset in corporate financial strategies, transcending the status of a mere virtual asset, similar to Bitcoin. Corporations can secure a leading role in the tokenized market linked to institutional markets, beyond simply purchasing and holding Ethereum.
☞ CrossAngle is
Providing on-chain data-based essential operational solutions and trust-based community-building services for companies and foundations adopting Web3. It operates the crypto data intelligence platform Xangle, with the Xangle research team creating content to showcase trends in the virtual asset investment industry based on global virtual asset information and data.