Galaxy, Jump and Multicoin seek $1 billion to create Solana treasury firm: Bloomberg

Bitcoin’s jump from Friday was short-lived as the asset was not only stopped at $117,000 during the weekend, but it took another turn for the worse on Sunday evening and Monday morning.

Most altcoins have followed suit by turning red, with ETH dropping by over 3% daily, while XRP has slipped below the crucial support at $3.BTC Falls Hard

Last week was a tough one for the primary cryptocurrency as it was gradually declining for the most part. The culmination took place on Friday, ahead of Jerome Powell’s highly anticipated speech, when it slipped to a multi-week low of just under $112,000.

As the Fed Chairhintedat potential future rate reductions, BTCreacted with an immediate surge, driving it to over $117,000 within minutes. That was as far as it would go, though, as bitcoin quickly retraced to $115,000, where it spent most of the weekend.

As it seemed like more action would follow on Monday, the tables turned on Sunday evening. In a sudden and unexpected price drop, bitcoin’s pricetumbledby several grand to under $111,000, a level not seen since July 10.

Although it bounced off at first to over $113,000, the bears appear to be in control now as they have pushed BTC south to well below $112,000 as of press time. Its market cap has dropped to $2.225 trillion, while its dominance over the alts is just over 56% on CG.Alts in Retrace Mode

Most altcoins have turned red on a daily scale as well. Ethereum, which set yet another new all-time high at $4,950 yesterday, has plunged to just over $4,600 as of now. XRP was rejected at $3.1 yesterday and now struggles below the coveted $3 support line.

SOL, ADA, TRX, DOGE, XLM, and LINK have posted similar losses. SUI, LTC, AAVE, PEPE, ENA, MNT, OKB, UNI, and ETC have declined even further, with daily drops of up to 7-8%.

The cumulative market capitalization of all cryptocurrency assets has plunged by roughly $200 billion since yesterday to $3.930 trillion as of now.

Digital asset companies Galaxy Digital, Multicoin Capital and Jump Crypto are reportedly working to raise $1 billion to buy Solana. 

A Bloomberg report citing anonymous sources said on Monday that the three companies are looking to form the largest treasury dedicated to Solana . It added that the three companies have tapped Cantor Fitzgerald as lead banker.

The plan reportedly involves taking over a publicly traded entity to create a digital asset treasury company focused on SOL. Bloomberg said that the Solana Foundation has endorsed the efforts of the three companies, backing the treasury move. 

SOL remains the sixth-largest token by market capitalization, according to CoinGecko. It currently trades at almost $200, up 6.6% in the last 30 days. 

Cointelegraph reached out to Galaxy Digital for comments but had not received a response by publication. 

This is a developing story, and further information will be added as it becomes available.

This week, technical conditions and broader macro signals are colliding, making it an extremely important week for Bitcoin. Because of Jerome Powell’s dovish turn, which suggests that interest rates may be lowered in September, risky assets typically see significant growth. Although Bitcoin’s price action indicates hesitation rather than strength, macro liquidity seems to have room to grow, highlighting the possibility on the market.

No fresh fuel

The fundamental problem is highlighted by on-chain data: liquidity is steady, but there are no new inflows to support a rally. While capital is not leaving at alarming rates, network growth is slowing, and Bitcoin is not breaking through resistance levels because there are not any new buyers or institutional demand. Even dovish macro tailwinds are unlikely to create the next leg higher in the absence of inflows. Chart by TradingView">

The indecision is reflected on the daily chart. The fact that Bitcoin is currently testing the 100 EMA after falling below its 50 EMA shows how feeble the most recent attempt at a recovery was. Red candles for several days after the rejection at $116,500, which functioned as a failed breakout, indicate that the upward momentum has essentially vanished. Additionally, declining trading volumes support the idea that there is still more downside risk.

Bitcoin's key point

Because Bitcoin is at a turning point, this week is more than important. Short-term recovery is still feasible if it can settle at the 100 EMA around $111,000-$112,000, particularly if liquidity conditions improve. If this level of support is not maintained, there may be a much more severe correction with a deeper retracement toward the 200 EMA close to $104,000.

Essentially, conviction and new inflows are what Bitcoin needs to maintain a rally, not just macro liquidity. Whether Bitcoin can use Powell’s dovish move as fuel for a recovery, or if the lack of participation will drive it further into corrective territory, will be determined in the days ahead.

The Federal Reserve has once again left markets scratching their heads. Just weeks after Fed Chair Jerome Powell sounded firmly hawkish, he now hints at something unthinkable, abandoning the long-standing 2% inflation target. 

This has shaken global markets so much that almost $1 trillion in value disappeared in a single day.

Now, traders are struggling to make sense of whether this is a bold evolution in policy or simply a sign of desperation.

FED From Hawkish to Hesitant

During the Q&A at the July 30 FOMC meeting, Powell warned that inflation was still above target, even though job goals were met. Inflation rose from 2.9% to 3.1% in just two weeks, backing his concern.

The Fed has kept rates high for over a year, but now signs of slowing job growth and rising unemployment are creating new risks. Powell said the labor market is in a “middle ground,” not strong enough for confidence, but not weak enough for immediate action.

At Jackson Hole, Powell surprised markets by suggesting the Fed may ease away from its strict 2% inflation goal. This could mean pausing rate hikes or even cutting rates to protect jobs.

For many, this abrupt change raises more questions than answers.

Why $1 Trillion Vanished?

Following Powell’s comments, markets reacted with anxiety. Investors, always sensitive to Fed signals, panicked at the possibility of a policy reversal. Within hours, almost $1 trillion in market value was gone. 

This sharp sell-off shows how nervous investors are about whether the Fed can still manage a “soft landing,” slowing inflation without crashing the economy.

Policy Evolution or Policy Desperation?

Investors are unsure if Powell is being flexible with new data or simply reacting too late. U.S. job reports keep getting revised lower, while trillions in new government spending add more pressure. 

Some analysts fear stagflation, a mix of high inflation and slow growth, could return. Others worry that ongoing global tensions and policy delays could make things worse.

Bitcoin as a Safe Haven?

Meanwhile, investors believe this could be a turning point for Bitcoin. If trust in central banks continues to fade, Bitcoin may be seen as a stronger hedge against inflation and unstable policies, acting as a guide when traditional markets struggle.

Although the global crypto market cap fell 2.4% to $3.9 trillion. Bitcoin dropped 2.6% and now trades below $112,000, while Ethereum slipped to $4,641.

By Elsa Ohlen

Bitcoin and smaller cryptocurrencies fell sharply over the weekend, erasing the boost they got from Federal Reserve Chair Jerome Powell's remarks on interest rates.

The price of the world's largest cryptocurrency was down 2.6% over the past 24 hours to $111,938, according to CoinDesk data. Ether and XRP fell 2.8% each while S&P 500 futures edged down 0.1%.

Friday's surge seems to have attracted new sellers, pushing Bitcoin below its 50-day average, FxPro analyst Alex Kuptsikevich noted.

Powell's speech at the Jackson Hole Economic Symposium Friday sent both digital assets and stocks higher after he signaled a rate cut is around the corner. Lower rates matter for cryptos as they increase traders' appetite for risk assets such as stocks and digital assets, as opposed to interest-yielding investments such as bonds.

Several crypto news outlets also reported that a so-called Bitcoin whale — an individual or entity that holds a large amount of the token — started to unload assets, triggering a flash crash on Sunday.

Write to Elsa Ohlen at elsa.ohlen@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

Cardano founder Charles Hoskinson has broken his silence on a potential collaboration with Ripple. In his latest Ask Me Anything (AMA) session on YouTube, Hoskinson revealed that he met with Ripple CEO Brad Garlinghouse and had a “great” conversation. Could this be the inception of a new partnership?

Hoskinson’s Step Towards XRP & Ripple

Cardano founder revealed that he joined a roundtable with the Federal Reserve, Chainlink Co-Founder Sergey Nazarov, Solana Co-Founder Anatoly Yakovenko, Ilya from Near Protocol, and Ripple’s Garlinghouse. His discussion with other leaders was mainly focused on how different blockchain projects could work together in the future.

Hoskinson’s remarks suggested that Cardano and Ripple might explore ways to connect their platforms and communities.

He said, “I had a great conversation with Brad (Garlinghouse) about XRP. Lace (Cardano wallet) will support XRP until the end of the year. I’d love to do a joint event with some of the XRP guys, maybe John Deaton and a few others.”

He confirmed that the wallet would continue its multichain journey with XRP until the end of 2025, allowing users to store, send, and receive XRP through the Cardano blockchain wallet. This development is a part of Cardano’s broader strategy, which has already included assets like Bitcoin.

Shift in Hoskinson’s Stance on XRP 

Before the disclosure of the new possible collaboration, there was a long-standing feud between Hoskinson and the XRP community. In late 2023, Hoskinson reaffirmed his stance against any possible partnership with XRP, calling the community “toxic and petty.” He also accused the members of XRP of harassing him. 

However, he later publicly apologized to the XRP community while also expressing the desire to collaborate. Earlier this year, Hoskinson defended the inclusion of XRP in the US strategic reserve. He also favorably spoke about Ripple’s potential purchase of stablecoin giant Circle.

Cardano Founder’s Views on CLARITY and Interest Rate

In his podcast, Hoskinson predicted that the Fed would cut interest rates, and then the CLARITY Act would come. He expressed, “The CLARITY Act is coming along very well, with a comprehensive draft likely by the end of September and hopefully signed into law in October.”