Bitcoin Sees Largest Influx in 7 Months... Will September Be a Turning Point for Crypto Legislation?

US spot Bitcoin ETFs saw net inflows exceeding $1 billion over three days from August 17 to 19. This is the largest amount recorded in approximately seven months since January. Park Sang-hyuk, editor-in-chief, explained, "Even though data for only three days, from Monday to Wednesday, August 17 to 19, has been compiled, over $1 billion in net inflows has been confirmed. This is the highest in about seven months since January." He added that the inflow could increase further when Thursday and Friday's data are included.

Spot Ethereum ETFs showed strength in this rally, with higher inflows compared to Bitcoin. Park Sang-hyuk, editor-in-chief, stated, "Spot Ethereum ETFs are even higher. In this rally, they are consistently keeping pace without falling behind." Unlike before, Ethereum is showing a concurrent rise with Bitcoin, indicating that market interest is also expanding to Ethereum.

The US Commodity Futures Trading Commission (CFTC) Innovation Advisory Committee held its first meeting, officially announcing plans to establish digital asset regulations. Discussions at the meeting focused on institutionalizing digital asset exchanges and establishing regulations for margin and leverage. Park Sang-hyuk, editor-in-chief, stated, "At the Innovation Advisory Committee, the CFTC chairman once again emphasized that even if the crypto bill doesn't pass, they will concretely establish rules." This highlighted the CFTC's determination to enact specific rules for digital assets regardless of the bill's passage.

Key figures from the crypto industry, including the Chainlink CEO, attended a White House meeting to discuss the crypto bill deliberations set to resume in September. Park Sang-hyuk, editor-in-chief, explained the meeting's content: "The first topic discussed was the voting schedule for the crypto bill when it resumes in September. The second topic was how to coordinate the various contentious issues, and interviews confirmed that these discussions took place." This meeting discussed the voting schedule for the September crypto bill and the possibility of coordinating key contentious issues, which is increasing market expectations for the bill's passage.

The White House meeting was reportedly more grand than initially expected. The Coinbase CEO positively assessed the bipartisan cooperation atmosphere after the meeting. Park Sang-hyuk, editor-in-chief, commented, "The Coinbase CEO also came out and said, 'From what I see, it seems to have been quite bipartisan.' Anyway, it seems the Trump administration is trying to exert some pressure, and I think these aspects have been fully reflected in the price within 10 minutes." He interpreted this as the Trump administration's intention to exert influence over crypto policy and analyzed that this atmosphere has already been reflected in market prices.

Discussions have begun at the government level regarding the strategic accumulation of Bitcoin. Park Sang-hyuk, editor-in-chief, mentioned, "It was said that there were discussions at the government level to expand Bitcoin strategic reserves." Although there was no direct announcement of Bitcoin purchases, this is considered a more advanced agenda than before, suggesting that the government has begun to perceive Bitcoin not just as an asset but as a strategic object.

Recent on-chain data analysis shows that Bitcoin spot demand, combining spot and perpetual futures, has turned positive. This is the first time this phenomenon has occurred since the digital asset crash in October 2025. Park Sang-hyuk, editor-in-chief, emphasized, "Recently, spot demand has also turned positive. This is the first time it has turned positive since the digital asset crash in October 2025." Analysis suggests that an uptrend supported by spot demand, rather than just high futures demand, is more favorable for securing long-term and robust upward momentum.

Despite the recent upward trend in Bitcoin, there are conflicting views in the market regarding the sustainability of the rally. Some argue, based on past cycle analysis, that the accumulation period for the rally has not yet been sufficient. Park Sang-hyuk, editor-in-chief, stated, "Looking at past cycles, the accumulation period for this rally has not yet been sufficient. The futures market still has overwhelming demand." He pointed out that with futures market demand still overwhelming, the possibility of further corrections cannot be ruled out.

Despite the recent decline in the US stock market, Bitcoin showed an unusual movement, rising alone. Park Sang-hyuk, editor-in-chief, explained, "The US stock market fell yesterday, but Bitcoin rose. This is a very noteworthy point." It is remarkable that Bitcoin succeeded in defending its price even as the US stock market fell and bond yields rose due to the announcement of US Treasury buybacks and geopolitical risks from Iran.

Market concerns are growing as unprecedented, strong economic sanctions against Iran are scheduled for next Monday. Park Sang-hyuk, editor-in-chief, reported, "There are now talks of unprecedented economic measures against Iran scheduled for next Monday, and the market is concerned about this." Concerns are being raised about a potential increase in oil prices due to a possible decrease in Iranian oil supply, which is expected to act as a variable that could affect the global economy as a whole.

The US government's Treasury buyback policy is being evaluated as merely a 'rollover' that has failed to create new market demand. Park Sang-hyuk, editor-in-chief, pointed out, "The fact that Treasury buybacks didn't work ultimately means they are just rolling over debt, which everyone knew." This indicates that market demand for new Treasury bonds is not being supported, increasing market skepticism about the US government's ability to secure growth momentum. As a result, US Treasury yields continue to rise.

The price correlation coefficient between Bitcoin and gold reached its highest level in August, indicating a strengthened correlation. Park Sang-hyuk, editor-in-chief, stated, "Bitcoin and gold showed the highest price correlation coefficient. The correlation between Bitcoin and Nasdaq and KOSPI, on the other hand, is showing a negative value." This suggests that Bitcoin is moving independently, distinct from the traditional stock market.

Two possibilities were presented as future Bitcoin scenarios. The first scenario is that if legislation passes and a weak dollar environment is created, Bitcoin will regain its digital gold status, achieving a higher appreciation rate than gold. Park Sang-hyuk, editor-in-chief, explained, "The first is, of course, Bitcoin recovering its digital gold status and performing better than gold." The second scenario is if digital asset woes fail to be resolved despite a weak dollar environment, Bitcoin will show a lower appreciation rate than gold. Bitcoin's future is expected to largely depend on inflation relief and changes in the regulatory environment.

Another scenario is Bitcoin continuing its independent solo rally, separate from traditional assets. Park Sang-hyuk, editor-in-chief, commented, "A case where Bitcoin goes on a solo rally, or does so independently, could be the phenomenon seen today." This refers to the phenomenon where only Bitcoin's price rises even when other assets are struggling. In particular, if data accumulates showing Bitcoin's price increasing even under adverse conditions like rising bond yields, this independent rally scenario is highly likely to materialize.

MicroStrategy's Bitcoin investment strategy was cited as a good example of changing investor sentiment. Park Sang-hyuk, editor-in-chief, explained, "Human psychology is such that when you're losing a lot, you think, 'Please, just break even.' Then when you break even, you think, 'Do you think I held out all this time just for this?'" This describes the psychological shift investors experience when they recover their initial investment after a period of loss. This is an important factor in understanding why MicroStrategy has consistently bought Bitcoin during price dips, maintaining a long-term perspective.

One of the main reasons for Ethereum's outperforming Bitcoin's rally is the high net inflow into weekly Ethereum ETFs. Park Sang-hyuk, editor-in-chief, explained, "There are also weekly Ethereum ETFs. Similarly, they saw the maximum net inflow in almost seven months... Bitcoin has risen about 16% compared to a week ago, while Ethereum has risen about 24%." Over the past week, Bitcoin rose approximately 16%, while Ethereum rose about 24%, showing stronger buying momentum. Additionally, expectations for the SEC's easing of regulations on token securities businesses are also analyzed to have positively impacted Ethereum's rise.

Another major factor in Ethereum's rally is the influx of bargain purchases after a prolonged decline. Park Sang-hyuk, editor-in-chief, analyzed, "The biggest factor in the rise is actually bargain buying. Ethereum was heavily suppressed... Because it was suppressed so much, there's a situation where the rise can be somewhat inversely large." Since Ethereum and major altcoins have been undervalued for a significant period, a technical rebound is highly anticipated, leading to the current strong upward momentum.

News of the impending 'Glenste Upgrade' for Ethereum's technical upgrade is also acting as a contributing factor to its rise. Park Sang-hyuk, editor-in-chief, stated, "From a technical perspective, the Ethereum Glenste upgrade is imminent, as I've mentioned several times, and now the testnet schedule has been publicly released. It's scheduled to launch in September." The testnet is expected to launch in September, with a target for official launch within this year. This upgrade is anticipated to improve Ethereum's scalability and overall performance, which is expected to positively impact Ethereum's long-term value appreciation.