China May Launch First Yuan-Pegged Stablecoin Amid Global Push

Cryptocurrency

Summary:

China is considering allowing the use of yuan-backed stablecoins for the first time, in what would be a sharp reversal of its stance on digital assets, as Beijing seeks to expand the currency

China is considering allowing the use of yuan-backed stablecoins for the first time, in what would be a sharp reversal of its stance on digital assets, as Beijing seeks to expand the currency’s role in global trade, according to a Reuters report.

The State Council, China’s cabinet, is set to review a roadmap later this month that could approve stablecoin use as part of broader efforts to boost yuan internationalisation, the sources said. The plan includes usage targets, regulatory responsibilities, and risk-control guidelines.

Senior leaders are expected to convene for a study session on stablecoins and yuan adoption before the end of August, one source said. The meeting would outline boundaries for stablecoin development and provide political backing for future regulatory steps.

China banned cryptocurrency trading and mining in 2021 over concerns about financial stability, even as it pushed forward with the rollout of the digital yuan. Allowing yuan-linked stablecoins would mark a dramatic change in policy and comes as stablecoins tied to the U.S. dollar gain traction globally.

The global stablecoin market is valued at about $247 billion, but Standard Chartered projects it could reach $2 trillion by 2028. The sector is dominated by dollar-backed tokens, which account for over 99% of global supply, according to the Bank for International Settlements.

Beijing views stablecoins as a potential tool for promoting the yuan abroad, particularly as Chinese exporters increasingly rely on dollar-pegged stablecoins to settle cross-border trades, the people said.

Global Push and Domestic Hurdles

China’s share of global payment flows fell to 2.88% in June, its lowest in two years, compared to the dollar’s 47% share, SWIFT data shows. While Beijing has long sought greater use of the yuan, its strict capital controls remain a barrier to deeper international adoption.

Elsewhere in Asia, South Korea and Japan are preparing to allow domestic stablecoin offerings, while in the U.S., President Donald Trump has backed dollar-pegged stablecoins and directed regulators to establish a legal framework.

China’s plan would assign implementation to regulators including the People’s Bank of China (PBOC), sources said. Hong Kong and Shanghai are expected to play key roles in local rollouts, with Hong Kong’s new stablecoin ordinance already in effect from Aug. 1.

A PBOC adviser recently told local media that an offshore yuan stablecoin in Hong Kong was “a possibility.” Shanghai, meanwhile, is setting up an international hub for the digital yuan.

Beijing is expected to present the stablecoin roadmap in coming weeks and may raise the issue at the Shanghai Cooperation Organisation (SCO) Summit in Tianjin on Aug. 31–Sep. 1, sources said.

Source: CryptoSlate

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Olivia Brooks

Cryptocurrency

On August 18, 2025, Bitcoin took a wild ride, dropping 5% from ~$120,000 to $114,000–$115,000 in just 24 hours. This Bitcoin Price Crash 2025 Whale Moves Macro Fears erased gains from its $123,182 all-time high earlier this month, leaving investors scrambling. What’s behind this sudden dip? A mix of quiet crypto whales, macroeconomic storm clouds, and a bearish shift in market sentiment is shaking the crypto market. Let’s unpack the chaos with on-chain data, expert insights, and X buzz to see what’s next for Bitcoin.

Ready to trade this Bitcoin dip? Sign up on Bybit and grab up to $30,000 in deposit bonuses to navigate the crypto storm!

1. Whale Moves: Dormant Wallets Wake, But Buying Dries Up

Crypto whales, big players holding thousands of BTC, can move markets with a single transaction. On August 17, on-chain data lit up as dormant wallets from Bitcoin’s early days stirred, shifting funds from legacy P2PK addresses to secure SegWit wallets. Analysts link this to fears of quantum computing vulnerabilities, not outright selling. Still, these moves sparked panic, with traders fearing liquidations.

The bigger issue? Whales have gone quiet on buying. Unlike July’s rally, when whales scooped up $11.2 billion in BTC, the past 24 hours showed zero major purchases. Instead, ~1,800 BTC flowed to exchanges, hinting at profit-taking or repositioning. One whale cashed out $15.4 million near the $120,000 resistance, a historical ceiling. However, a $53 million BTC outflow to cold storage suggests some are holding tight, potentially capping the downside at $114,000–$115,000. Without aggressive buying, this whale silence fueled the Bitcoin Price Crash 2025 Whale Moves Macro Fears.

2. Macro Fears: Inflation, Tariffs, and Fed Uncertainty

Bitcoin’s price is now tightly linked to risk assets like the S&P 500 and Nasdaq (70–90% correlation). The latest dip aligns with macro turbulence rattling markets:

Surging Inflation: July’s U.S. Producer Price Index (PPI) spiked 0.9% month-over-month, far above the expected 0.2%, dimming hopes for Federal Reserve rate cuts in September. With one-year Treasury yields at three-month highs, investors ditched risky assets like Bitcoin for safer bets, triggering $500 million in crypto liquidations.

Trump’s Tariffs: President Trump’s new 10–41% “reciprocal” tariffs on multiple countries have stoked inflation fears and trade war concerns. The crypto market, sensitive to such policies, saw Bitcoin and altcoins like Ethereum drop 2–3%.

Economic Slowdown: Revised U.S. job reports and a 4.2% unemployment rate signal a cooling economy. With $71 billion wiped from crypto markets, Bitcoin’s “digital gold” appeal faded, trading more like a tech stock.

August’s historical weakness (median -8.3% returns) makes this 5% drop feel like a seasonal pullback, amplified by macro headwinds.

3. Market Sentiment: Bearish Signals and ETF Pullbacks

Market sentiment has turned cautious, with traders and institutions stepping back:

Derivatives Shift: Bitcoin futures premiums fell to 6%, showing weaker bullish bets, while options skew leans bearish with increased put buying. The RSI (4-hour chart) at 46.90 nears oversold, and the MACD at -443.38 signals fading momentum.

ETF Outflows: Spot coin ETFs saw $14.1 million in net outflows on August 15, with BlackRock, ARK, and Grayscale leading the exit, reversing July’s $6 billion inflows. Fidelity’s holdings dropped to 5,290 BTC, reflecting institutional caution.

X Buzz: Social sentiment on X is mixed but bearish-leaning. Users note Bitcoin trading below key SMAs ($118,592, $119,010), warning of a drop to $110,000–$112,000 if $114,000 support breaks. Some call it a “healthy cooldown,” but “zero whale activity” posts dominate.

This bearish tilt has deepened the Bitcoin Price Crash 2025 Whale Moves Macro Fears, with investors awaiting a catalyst.

4. Can Bitcoin Bounce Back?

This 5% drop fits Bitcoin’s post-halving pattern (April 2025), where dips often precede rallies. Support at $112,000–$114,000 (CME futures gap) is holding, with resistance at $117,000–$120,000. If macro fears ease, via Fed clarity or tariff resolutions, a rebound to $120,000+ is possible, backed by BlackRock’s 580,430 BTC holdings.

But risks remain. Ongoing ETF outflows, quiet whales, and economic uncertainty could push Bitcoin to $108,000–$110,000. Analysts like Rekt Capital warn that failing to reclaim $124,500 may cap upside, though long-term targets hit $135,000–$150,000 by year-end. X posts suggest a bounce if RSI hits oversold, but negative MACD urges caution.

5. How to Navigate the Bitcoin Dip

Facing the Bitcoin Price Crash 2025 Whale Moves Macro Fears? Here’s your game plan:

●Hold Steady: Avoid panic-selling. Bitcoin rebounded from similar dips, like $80,000 to $82,629 in March 2025.

●Buy ETFs: Use Bitcoin ETFs on Bybit for buffered exposure.

●Diversify: Mix in altcoins like Solana, resilient in past crashes.

●Watch Signals: Monitor Fed announcements, on-chain flows, and X sentiment for rebound cues.

●Manage Risk: Cap leverage at 5x and target accumulation zones like BTC at $112,000–$114,000.

Check our Cryptocurrency Investment Guides for more crypto investment strategies.

Conclusion

The Bitcoin Price Crash 2025 Whale Moves Macro Fears, a 5% drop to $114,000, $115,000, stems from quiet whales, macro pressures like Trump’s tariffs and inflation, and bearish market sentiment. While not a full-blown crash, it shows Bitcoin’s sensitivity to global risks. With support at $112,000 and potential catalysts like Fed clarity, this could be a dip to buy. Stay sharp, check CoinDesk for updates and join the conversation on Twitter or Telegram!

Source: CryptoSlate

Risk Warnings and Disclaimers

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Adam

Economic

President Donald Trump said on Tuesday that Federal Reserve Chair Jerome Powell is "hurting" the housing industry "very badly" and repeated his call for a big cut to U.S. interest rates.

"Could somebody please inform Jerome "Too Late" Powell that he is hurting the Housing Industry, very badly? People can't get a Mortgage because of him. There is no Inflation, and every sign is pointing to a major Rate Cut," Trump wrote on Truth Social.

Inflation is well off the highs seen during the pandemic, but some recent data has given a mixed picture and inflation continues to track above the Fed's 2% target range.

Trump's latest salvo against Powell comes ahead of the Fed chair's Friday speech at the annual Jackson Hole central banking symposium, where investors will cleave to his every word for hints on his economic outlook and the likelihood of a coming reduction to short-term borrowing costs.

The Fed's next policy meeting will be held on September 16-17.

Investors and economists are betting the Fed will cut rates by a quarter of a percentage point next month with perhaps another reduction of similar size to come later in the year, far less than the several percentage points that Trump has called for.

Trump's Treasury secretary, Scott Bessent, has promoted the idea of a half-point rate cut in September.

he U.S. central bank cut its policy rate half a percentage point last September, just before the presidential election, and trimmed it another half of a percentage point in the two months immediately following Trump's electoral victory, but has held it steady in the 4.25%-4.50% range for all of this year. Fed policymakers have worried that Trump's tariffs could reignite inflation and also felt the labor market was strong enough not to require a boost from lower borrowing costs.

MIXED INFLATION PICTURE

The Consumer Price Index rose 0.2% in July, with the 12-month rate through July at 2.7%, unchanged from June. Core CPI, which strips out the volatile food and energy components, increased 3.1% year-over-year in July. Based in part on that data, economists estimated the core Personal Consumption Expenditures Price Index rose 0.3% in July. That would raise the year-on-year increase to 3% in July. The PCE is a key measure tracked by the Fed against its own 2% inflation target.

And despite a moderate rise in overall consumer prices in July, producer and import prices jumped, a suggestion that higher consumer prices could be coming as sellers pass higher costs onto households. The inflation picture comes amid a picture of a possible cooling in the labor market, with declines in monthly job gains, although the unemployment rate, at 4.2%, remains low by historical standards.

Trump's online attacks on the Fed and Powell more typically focus on the cost that higher interest rates mean for U.S. government borrowing. High mortgage rates are a key pain point for potential homebuyers who are also facing high and rising home prices due to a dearth of housing supply.

Mortgage rates can be loosely tied to the Fed's overnight benchmark rate but more closely track the yield on the 10-year Treasury note, which typically rises and falls based on investors' expectations for economic growth and inflation. A Fed rate cut does not always mean lower long-term rates -- indeed after the Fed cut rates last September, mortgage rates -- which had been on the decline -- rose sharply.

In recent weeks the most popular rate - the 30-year fixed mortgage rate -- has drifted downward but -- at around 6.7% most recently -- is still much higher than it had been before inflation took off after the pandemic shock and the Fed began its rate-hike campaign in 2022.

Source: Reuters

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Adam

Cryptocurrency

Bitcoin fell to $112.5k in the morning, receiving temporary support when it touched the area of recent lows at the start of the month.

Bitcoin Under Pressure: $112.5K Bounce or Road to $100K?

Crypto market capitalisation continues to melt, falling another 1.4% to $3.83 trillion. At its lowest point this morning, it dropped to $3.79 trillion, which is 9% below the peak of $4.17 trillion. The crypto market lost momentum earlier than Nasdaq100 stocks, regaining its reputation as a more sensitive indicator of investor sentiment.

The sentiment index fell to 44 (fear) — a nearly two-month low. This is a sharp change in sentiment after 75 (on the verge of extreme greed) six days ago.

Bitcoin fell to $112.5k in the morning, receiving temporary support when it touched the area of recent lows at the start of the month. At the same time, the day before, sales increased after a decline below the 50-day moving average — a bearish signal. Now, all attention is focused on whether there will be a pullback to a potentially stronger support area near 108. If there is no support there, a straight road to $100K will open.

Crypto News

According to CryptoQuant, Short-term Bitcoin holders have started selling assets at a loss for the first time since January. The last time such a situation was observed was in January of this year, when the market experienced the deepest correction in the previous crypto cycle.

Santiment highlights several key on-chain metrics that indicate a possible market overheating. The main signal is that BTC’s new high in August was reached on lower trading volume than in July. Another sign is a sharp increase in retail investor activity, usually associated with FOMO, which typically precedes corrections. The situation with Ethereum looks even more risky.

Presto Research believes that Bitcoin’s recent records may be a consequence of the dollar’s depreciation rather than a reflection of real value growth. For a more accurate assessment, it is better to express the value of Bitcoin in gold. With this calculation, the BTC rate will be lower than the 2021 peaks and the levels after the 2024 elections.

Ethereum has recorded the largest queue for withdrawals from staking — more than 910,000 ETH out of $3.7 billion. The current withdrawal queue will be processed in 15 days due to the PoS architecture on which Ethereum operates. The increase in the number of requests is related to profit-taking but is not equivalent to selling pressure.

Source: fxempire

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Adam

Stocks

Economic

European stocks opened lower on Wednesday as global market sentiment wavered.

The pan-European Stoxx 600 was trading 0.3% lower by 8:20 a.m. in London (3:20 a.m. ET), with most sectors and all major regional bourses in negative territory.

Regional bourses traded higher on Tuesday as global markets reacted broadly positively to the outcome of talks between U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskyy and European leaders at the White House on Monday. Defense stocks were among the worst performers in the index, however.

The sector extended its losses in early trade on Wednesday, with the Stoxx Europe Aerospace and Defense index shedding 0.9% in early morning trade. During Tuesday’s session, the index had moved 2.6% lower.

German defense contractors Rheinmetall and Hensoldt fell 1.8% and 1.9%, respectively, on Wednesday morning. Britain’s Rolls-Royce, down 1.9%, and Qinetiq , 2% lower, were also among the worst performers in the sector.

“Speculation about a diplomatic breakthrough meant that European assets saw some sizeable moves [on Tuesday], particularly those most affected by the conflict,” Deutsche Bank’s Jim Reid said in a Wednesday morning note. “Indeed, it was notable that defence stocks really struggled yesterday, and Rheinmetall (-4.85%) posted the worst performance in the German DAX (+0.45%) yesterday, despite being the strongest performer over 2025 as a whole given the wider ramp up in defence spending.”

Markets are also reacting to U.K. inflation which came in at a hotter-than-expected 3.8% for the year to July.

The British pound rose slightly against the U.S. dollar after the U.K. inflation print was published, before paring its gains to trade flat against the greenback.

In a note after the inflation data was released, Sanjay Raja, chief U.K. economist at Deutsche Bank, attributed the surprise to Britain’s Office for National Statistics collecting its price data later than usual, meaning it coincided with school summer holidays.

“Prices for airfares and sea-fares tend to be more volatile later in July as demand picks up,” he said. “In fact, according to the ONS airfares were up a staggering 30% m/m – the highest monthly increase going back to 2001.”

He argued that this would likely unwind within the next month or so, but conceded that “there’s more upward momentum left.”

“We expect inflation to push a little higher to near 4% y/y in September, before slowly grinding its way lower through the course of the year,” Raja said. “What’s more, we think that the path to 2% CPI next year looks narrower. We expect CPI to sustainable return to target around 2027.”

That, Raja added, left the Bank of England grappling with “an uncomfortable trade-off,” where its policymakers were weighing high price momentum against a sluggish labor market.

Globally, Asia-Pacific markets fell overnight, tracking Wall Street declines in Tuesday’s trading session. S&P 500 futures were near flat overnight ahead of the release of the Federal Reserve’s July meeting minutes.

At the time, policymakers once more held steady on interest rates, but Fed Governors Christopher Waller and Michelle Bowman dissented, marking the first time two voting Fed officials have done so since 1993.

Traders are also focusing on key speeches from Fed officials when they convene in Jackson Hole, Wyoming, for the Fed’s annual economic symposium on Thursday. Investors are awaiting clues from Fed Chair Jerome Powell as to what will happen at the central bank’s remaining policy meetings this year.

The Fed funds futures market is indicating an 84.9% chance for a quarter-point rate cut at the Fed’s next policy meeting in September, according to CME’s FedWatch tool.

Source: cnbc

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Thomas

Russia-Ukraine Conflict

European leaders are discussing a security guarantee for Ukraine that would commit Kyiv’s allies to decide within 24 hours whether to provide military support to the country if it’s again attacked by Russia.

A proposal that amounts to a NATO-like collective defense clause, but doesn’t come with actual membership in the alliance, is being pushed by Italian Prime Minister Giorgia Meloni. It’s among an array of options being fleshed out as European leaders leverage momentum after President Donald Trump agreed to back security guarantees for the war-battered nation.

The Italian plan recognizes that NATO membership for Ukraine is off the table, but would offer a mechanism for collective assistance as the next best option, according to people familiar with the deliberations.

While the “NATO-light” option would fall well short of the military alliance’s collective defense pledge in Article 5 of the NATO charter, it would commit nations that have signed bilateral agreements with Ukraine to confer quickly on a response in case of attack, the people said, asking not to be named.

The options would then include providing Kyiv with rapid and sustained defense support, economic assistance, bolstering the Ukrainian military as well as imposing sanctions on Russia, the people said. They declined to be named discussing private deliberations. It wasn’t immediately clear whether the plan would entail individual European countries sending troops to Ukraine.

A meeting between Trump, Ukrainian President Volodymyr Zelenskiy and European leaders at the White House Monday produced a firmer commitment by the US to security guarantees – a relief to Europe after Trump appeared to tack toward Moscow following a summit in Alaska with Russia’s Vladimir Putin. At the same time, Trump ruled out sending soldiers to Ukraine, but said the US might provide air support.

European officials set to work to draw up guarantees, including a plan to send French and British troops to Ukraine as part of a potential peace agreement.

It’s unclear how the Meloni proposal figures into the discussion. One option for the mechanism pitched by her government would take a bilateral agreement between Rome and Kyiv that was signed in 2024 and contains mutual security arrangements as a blueprint, the people said. The discussions are in flux and subject to change, the people cautioned.

The Italian government didn’t respond to a request for comment.

Defense Minister Guido Crosetto told Italian newspaper Repubblica on Wednesday that Meloni’s idea “is that NATO — as a defensive alliance — could ensure the protection of a foreign country like Ukraine. Alternatively, individual nations could commit to doing so. The best mechanism will be chosen eventually. Certainly, with NATO, a superior deterrent would be guaranteed.”

The Italian leader was first in proposing Ukraine should be given the same security guarantees of NATO without actual membership, a combination that left some allied diplomats puzzled. In March, she said this would be a more durable solution than placing troops on the ground.

Article 5, the cornerstone of the alliance, mandates mutual protection in the event of an attack on any member of the Atlantic pact. Russia has staunchly opposed Ukraine’s NATO accession and said it is part of the reasons it initiated a full-scale invasion in 2022.

Meloni — who’s helmed Italy’s fourth-longest serving government and is a long-time ally of Zelenskiy — has engaged in a months-long balancing act in a bid to keep Trump on side while maintaining support for Kyiv, proposing herself as a “bridge-builder” between the two shores of the Atlantic.

Though Meloni and her camp were initially privately dismayed by Trump’s seismic moves in foreign policy, Bloomberg has reported, the relationship has eased significantly in recent months.

“She’s served there for a long period of time relative to others, they don’t last very long, you’ve lasted a long time, you’re gonna be there a long time,” Trump said as he introduced remarks from Meloni in Washington on Monday, calling her “a great leader and an inspiration.”

“Something is changing, something has changed, thanks to you, thanks also to the stalling in the battlefield, which was achieved with the bravery of the Ukrainians and with the unity that we all provided to Ukraine,” Meloni said.

“I’m happy that we will begin from a proposal, which is, let’s say, the Article 5 model, which was Italian at the beginning. We’re always ready to bring our proposals for peace, for dialog — it’s something we have to build together,” she said.

Source: Bloomberg Europe

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Winkelmann

Economic

Political

More details are emerging about President Trump's latest show of force in Latin America aimed at narco-terrorist cartels fueling America's drug crisis, which claims 100,000 lives a year. According to Reuters, three Aegis destroyers, surveillance aircraft, and an attack submarine are being deployed to international waters off Venezuela.

Sources close to the media outlet say 4,000 sailors and Marines will support the large force projection mission that includes three U.S. Aegis guided-missile destroyers (USS Gravely, USS Jason Dunham, and USS Sampson), along with P-8 surveillance planes, other warships, and at least one attack submarine.

The operation will run for several months and focus on enhancing hemispheric defense to dismantle narco-terrorist cartels' command and control nodes that funnel drugs into the U.S. Also, this force projection is a signal to Beijing to limit Chinese activity in the region, particularly around critical infrastructure and trade chokepoints. The Trump administration has put Mexico's Sinaloa Cartel and Venezuela's Tren de Aragua on notice, classifying them as foreign terrorist organizations. The broader understanding is that this is all a part of hemispheric defense.

Source: Heritage Foundation

The deployment also signals to Venezuelan President Nicolas Maduro's government that Washington is not playing around. Maduro told the nation on Monday that his country will "defend our seas, our skies and our lands." He hinted at what he called "the outlandish, bizarre threat of a declining empire."

On Tuesday, Mao Ning, a spokeswoman for the Chinese Foreign Ministry, said combating drugs is a shared responsibility around the world: "But we hope that major countries should play the role responsibly, maintain regional peace and stability, and properly handle the issue together with relevant countries."

Source: Zero Hedge

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