Clapp Weekly: Flash crash after dovish Powell, BTC-ETH shift, Trump's crypto expansion

BTC price

Bitcoin remains under pressure post-weekend flash crash, triggered by a whale selling 24,000 BTC. The move sparked $550 million in liquidations, lowering the price from $117k to sub-$111k. Traders brace for US economic data and political turmoil — Trump’s decision to fire Fed Governor Lisa Cook has rattled markets.

BTC initially climbed above $114k on Thursday, August 21, before dipping to $112k and surging the next day — hitting $117k hours after Fed Chair Powell's Jackson Hole speech. After a four-day descent, it bottomed out at $109,214 yesterday, August 26. A recovery attempt fizzled close to $112k last night.

Currently at $111,103, BTC has gained 1.2% over the past 24 hours with a -10.7% 7-day change.

ETH price

Institutional embrace, new altcoin narratives, and shifting BTC-ETH flows drove ether to a new ATH of $4,946 last Sunday, August 24. The Polymarket odds of a $5K test this month are at 82% — ETH has outpaced BTC by gaining 20% over the past 30 days. However, its DeFi TVL is less impressive as competition from other chains grows.

The ETH price moved above $4.2k last Wednesday, August 20, and traded just above the level until Friday's push to a record $4,850 — followed by Sunday's ATH of $4,946.05. A steep decline halted yesterday when ETH bounced off the $4.3k mark.

Changing hands at $4,585.14, ETH is in the green, up 4.7% over the past 24 hours and 11.3% over the past 7 days.

Seven-day altcoin dynamics

Markets rejoiced last Friday, August 22, as the Fed Chair opened the door for a September interest rate cut. Speaking at the Jackson Hole Symposium, Jerome Powell cited recent weakness in the labor market, noting that “the shifting balance of risks may warrant adjusting our policy stance.”

Traders had positioned for a hawkish stance. BTC hit $117k in the immediate aftermath — before a weekend flash crash (see above) pushed it below $111k. Having retraced to its pre-Friday levels, the coin is struggling to rebound. Its reversal paused ETH’s rally and triggered losses across altcoins.

Volatility intensified yesterday, August 26, after President Trump fired Federal Reserve Governor Lisa Cook, citing "deceitful and potentially criminal conduct" over allegations of falsifying documents. The news shocked markets, sending the US dollar and futures for major indexes down.

Weekly winners

• CRO (+49.1%) rocketed after an announcement of a partnership between Trump Media and Crypto.com. The alliance, which involves a $105 million token purchase by Trump Media and a $50 million investment in DJT stock by the CEX, positions Cronos as the centerpiece of Truth Social’s reward system.
• OKB (+38.0%) soared due to scarcity-driven fundamentals — as OKX burned 65 million tokens to bring the total supply down to 21 million. The token's utility expanded as it became the exclusive gas token for the CEX's own blockchain, X Layer, severing its ties with the Ethereum mainnet.
• HYPE (+19.6%) hit a record high of $49.3, supported by an active community, ongoing project development, and the broader market recovery. The rally was catalyzed by BitMEX co-founder Arthur Hayes predicting up to 126x growth for the token in the next three years.

Weekly losers

• MNT (-12.9%) is pulling back after a recent surge driven by its Coinbase futures listing and the launch of Bybit's MiCA-compliant staking product. Despite the weekly decline, the network continues to gain traction, with adoption and utility rising.
• FET (-4.3%) succumbed to selling pressure after an initial hike on Powell's speech, rebounding only slightly yesterday in a sign of weaker participation and lower short-term conviction.
• SKY (-5.6%) has been declining since August 11, after S&P Global assigned the protocol a 'B-' rating, reflecting a high risk of default.

Cryptocurrency news

Capital shift: Bitcoin ETFs bleed as Ethereum forges ahead

The narrative for crypto ETFs is splitting in two. While US spot Bitcoin ETFs are on the verge of a grim milestone, their Ethereum counterparts are quietly posting record-breaking performances, signaling a potential shift in institutional flows.

Bitcoin ETFs need nearly $1 billion in inflows this week to avoid registering their second-largest monthly outflow on record. With a net withdrawal of $972 million so far in August, the sector is poised to break a four-month inflow streak.

Analysts directly link this capital exodus to BTC’s recent price struggles after a retreat from its all-time high of $124,128. The contrast could not be starker — ether ETFs have extended their winning streak since April, amassing a staggering $3.23 billion in net inflows this month alone.

What drives the shift?

Institutional appetite for diversification beyond the flagship coin is growing rapidly, primarily as utility and yield are reassessed.

• Bitcoin is championed as "digital gold" — a pristine store of value.
• Ethereum is a "productive asset" with value beyond speculation. It powers the next generation of finance (DeFi), tokenization, and smart contracts — while the proof-of-stake model allows institutions to earn staking yields.

While Bitcoin’s long-term story remains intact, institutional capital is now evaluating which assets offer both growth and fundamental utility. BlackRock’s recent purchase of $314 million worth of ETH for its spot ETF is a powerful signal of this conviction, a strategic "buy-the-dip" approach.

The gap is growing

For now, ether is forging ahead. For Bitcoin to reignite its bull run and hit year-end targets of $150,000, analysts at 10x Research note it requires massive, sustained inflows — nearly double the combined allocations from ETFs and giants like Strategy since January.

CRO rockets as Trump Media bets $105M on new treasury venture

Trump Media & Technology Group (TMDG), the parent company of Truth Social, has made a strategic pivot to leverage the Cronos ecosystem. Its alliance with CRO issuer Crypto.com establishes a digital asset treasury focused on accumulating the token, mirroring Strategy’s famed Bitcoin playbook but with a twist.

Structure of the deal

TMDG has partnered with blank-check company Yorkville Acquisition Corp. to form Trump Media Group CRO Strategy, a new entity set to trade on Nasdaq under the ticker MCGA. The venture aims to amass $1 billion worth of CRO tokens — approximately 19% of the token’s total supply.

This aggressive accumulation will be supported by $420 million in cash and warrants and a staggering $5 billion equity line of credit. There is also a direct exchange: TMDG will purchase $105 million in CRO, while its partner will buy $50 million in TMDG stock, with both parties subject to a strict one-year lock-up period.

This strategy has already sent CRO’s price soaring 30%.

From treasury asset to social media utility

The underlying vision extends beyond mere speculation. TMDG plans to position CRO as a utility token within its Truth Social platform, launching a rewards system where users can convert engagement-based "gems" into CRO via a dedicated wallet.

Future roadmaps even suggest users could pay for subscriptions with the token. The resulting closed-loop economy could drive unprecedented mainstream adoption by linking social media activity to tangible crypto earnings.

Centralization questions and market impact

Corporate crypto treasuries are maturing beyond Bitcoin. However, having nearly a fifth of CRO’s supply concentrated in a single entity raises significant questions about centralization. In comparison, Strategy's holds just 3% of BTC's total supply.

The deal adds one more crypto venture tied to President Trump or his family, and its future hinges on the success of a single political and corporate narrative. Previously, in March, Trump Media announced it would offer crypto-related ETFs in collaboration with Crypto.com.