Crypto Currents: Ether reaches new all-time high near $5,000

Ether has shattered its previous price records, surging to a new all-time high driven by massive inflows into spot ETFs and significant corporate accumulation. The rally comes as Federal Reserve signals of impending rate cuts buoy the broader digital asset market, even as experts warn that traditional finance firms entering the space may be unprepared for crypto’s unique risks. Stay up on the crypto news that matters with “Crypto Currents,” from The Fly. Join us 2 PM daily for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio. Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

ETHER HITS NEW HIGHS ON MULTIPLE TAILWINDS: Ether (ETH-USD) surged to a new all-time high on Sunday, breaking past its long-standing record of $4,878 set in November 2021. According to data from CoinGecko, the price climbed as high as $4,946.05. The rally was initially sparked by dovish comments from Federal Reserve Chair Jerome Powell, which caused ether to jump nearly 8% in just one hour. By late Friday, the asset was up 15% on the day as it surpassed its previous peak. A primary driver has been the unprecedented demand for U.S. spot ether ETFs, which recently saw over $1B in inflows in a single day for the first time and have been outperforming bitcoin ETFs in recent weeks. Corporate accumulation has also been a major factor, with firms like BitMine Immersion (BMNR) amassing over $7B in ETH holdings, while SharpLink Gaming (SBET) holds more than $3.6B worth. The recent momentum is also supported by positive regulatory developments. The SEC recently provided clearer guidance on staking services, a significant shift that allows providers to pay rewards without agency registration. Furthermore, the recent passage of the GENIUS Act established a U.S. regulatory framework for stablecoins, which predominantly operate on the Ethereum blockchain.

CORPORATE TREASURIES SWELL, BUT EXPERTS WARN OF ‘CRYPTO WINTER’ FOR TRADFI: The number of public companies holding bitcoin on their balance sheets nearly doubled in the first half of 2025, according to a report from K33 Research. This trend, highlighted by Strategy (MSTR) recently purchasing an additional 3,081 BTC for $357M, as disclosed in an SEC filing , has fueled skepticism that some struggling companies are using crypto as a “reputational lifeline”. However, some industry veterans are sounding the alarm. In an interview with CNBC, Custodia Bank CEO Caitlin Long warned that legacy institutions lack the proper risk models for crypto’s 24/7, real-time settlement environment. This sentiment is echoed by a report from venture capital firm Breed, which concluded that most new bitcoin treasury companies may not survive the next market downturn due to overleveraging.

FED SIGNALS RATE CUTS, BOOSTING BROADER MARKETS: The broader crypto market received a significant boost after U.S. Federal Reserve Chair Jerome Powell signaled impending interest rate cuts and continued monetary expansion during a keynote address at the Jackson Hole Economic Symposium. The dovish comments were seen by industry leaders as a “key catalyst” for boosting risk appetite among investors. The market reaction was immediate, with bitcoin surging over 2% to hit $116,000 following the speech. This macroeconomic tailwind is critical for the asset class, as cryptocurrencies tend to appreciate during periods of monetary expansion when global liquidity levels are high. Powell’s remarks have solidified investor expectations, and according to data from the CME Group, 75% of investors now anticipate a 25-basis-point interest rate cut in September.

OTHER CRYPTO NEWS:

• Regulatory Oversight: The U.S. Treasury is formally considering whether to require identity checks to be embedded directly into DeFi smart contracts, a move critics warn could create a surveillance tool.
• Global Tax Pressure: According to Robin Singh, CEO of Koinly, the era of crypto investors enjoying a regulatory “gray zone” appears to be closing as governments increasingly eye the asset class for tax revenue. 
• Sophisticated ETFs Emerge: Bloomberg ETF analyst Eric Balchunas noted in a recent social media post a trend of firms filing applications for more complex crypto products, including actively managed and leveraged ETFs.
• Institutional Solana Fund: Reports from Bloomberg indicate that Galaxy Digital (GLXY), Multicoin Capital, and Jump Crypto are seeking to raise $1B to accumulate  solana (SOL-USD), which would create the largest treasury for the token.

PRICE ACTION: As of time of writing, bitcoin (BTC-USD) was trading at $112,745.23, while ether (ETH-USD) was trading at $4,633.52.