Ethereum Breaks New Records While Bitcoin Hits Another All-Time High

Ethereum surges 23% to $3,420 as treasury companies race to accumulate ETH while Bitcoin maintains momentum above $119,000.

Key Takeaways

• Ethereum jumped 23% to $3,420 driven by massive treasury company accumulation and record ETF inflows
• Bitcoin reached new all-time high of $123,000 before settling around $119,000, still showing institutional strength
• ETH ETFs saw record daily inflows of $726 million, obliterating previous records by significant margins
• Multiple Bitcoin mining companies pivoted to Ethereum treasury strategies, signaling fundamental market shifts
• Tom Lee's company targets acquiring 5% of total ETH supply, equivalent to 6 million Ethereum tokens
• The Genius Bill passed Congress, representing the first major crypto legislation victory in US history
• Strategic ETH reserve tracking shows race to $1 billion in treasury holdings already achieved
• BlackRock's Bitcoin ETF became fastest ever to hit $80 billion in assets under management
• OTC desks reportedly running out of ETH supply as demand significantly outpaces new issuance

Timeline Overview

• Early Week — Trump declares "crypto week" as Genius Bill and Clarity Act advance through Congress
• Mid-Week — Bitcoin hits $123,000 all-time high before consolidating around $119,000 range
• Peak Activity — ETH ETFs record $726 million single-day inflows, multiple treasury announcements flood market
  • Tom Lee's Bitmine Immersion Technologies crosses $1 billion ETH holdings threshold
  • Peter Thiel revealed as 9% investor in Tom Lee's ETH treasury vehicle
• Legislative Action — Genius Bill passes House vote, marking historic crypto regulatory milestone
• Late Week — Coinbase launches revamped "Base App" as everything app, Roman Storm trial begins
  • Poly Market founder Shane Copin cleared of FBI investigation charges
  • BlackRock files for ETH staking capabilities in their ETF product

Bitcoin Maintains Institutional Momentum Despite Volatility

• Bitcoin reached a new all-time high of $123,000 this week before experiencing typical volatility that saw prices "crash" to $116,000 and recover to $119,000. The 7% weekly gain demonstrates continued institutional appetite despite normal market fluctuations that crypto veterans expect.
• BlackRock's IBIT became the fastest ETF in history to reach $80 billion in assets under management, achieving this milestone four times faster than nearest competitors. This unprecedented speed reflects Wall Street's aggressive positioning in Bitcoin as an institutional asset class.
• Bloomberg terminals now denominate Bitcoin prices in millions of dollars rather than thousands, showing 0.112 million instead of $112,000. This shift represents a cultural milestone suggesting mainstream financial infrastructure expects Bitcoin to reach multi-million dollar valuations.
• Long-term holder metrics and rainbow chart analysis indicate Bitcoin remains in accumulation territory rather than frothy market conditions. Current positioning suggests the cycle has significant room for growth, with some projections targeting $1-2 million Bitcoin by 2027.
• The nupl (net unrealized profit/loss) indicator sits at 69, below levels typically associated with market tops. Traditional rainbow chart analysis places current prices in the accumulation zone, far from sell signal territories that appear in orange and red zones.
• Institutional flows continue driving Bitcoin's narrative this cycle, with infinite bid theory playing out through sustained ETF purchases. The asset maintains its position as digital gold for institutional portfolios seeking inflation hedges and alternative store of value exposure.

Ethereum Experiences Explosive Treasury-Driven Rally

• Ethereum surged 23% to $3,420, delivering double-digit gains with a "two handle" as massive treasury accumulation dominated headlines throughout the week. Companies announced ETH purchases ranging from $20 million to $300 million daily, creating confusion about which announcements were new versus repeated.
• Record ETH ETF inflows of $726 million in a single day obliterated the previous record of $430 million, with BlackRock's ETH ETF alone capturing $500 million. These flows represent the largest institutional demand for Ethereum ever recorded through traditional financial products.
• The supply-demand imbalance reached extreme levels as $726 million in ETF inflows occurred while only $6.7 million worth of new ETH was minted. Anthony Sassano noted this 110x ratio between demand and new supply, creating what he described as a supply shortage scenario.
• OTC desks began reporting ETH inventory shortages, with Winter Mute stating "we don't have any ETH on our desks. Everyone bought it." This institutional scramble for ETH inventory demonstrates how quickly large-scale demand can impact available supply in crypto markets.
• Several days showed Bitcoin declining while Ethereum gained, a reversal not seen in recent memory during this cycle. ETH came close to matching Bitcoin's daily ETF inflows despite Bitcoin maintaining a 4x larger market capitalization overall.
• Current ETH prices remain 40% below December all-time highs, suggesting significant room for growth compared to the 2021 bull market when ETH ranged from $150-300 before reaching $4,100. The improved monetary policy through proof-of-stake and EIP-1559 creates better supply dynamics than previous cycles.

Treasury Companies Race Toward Strategic ETH Reserves

• Tom Lee's Bitmine Immersion Technologies achieved the first $1 billion ETH treasury milestone with approximately 300,000 ETH holdings. Lee publicly announced intentions to acquire 5% of total ETH supply, equivalent to 6 million tokens, representing a Michael Saylor-style accumulation strategy for Ethereum.
• Joe Lubin's SharkLink Gaming (ESBET) reached $960 million in disclosed ETH holdings with 280,000 tokens, positioning second in the race toward major strategic reserves. The company now holds more ETH than the Ethereum Foundation itself following recent foundation sales.
• Peter Thiel purchased a 9% stake in Tom Lee's ETH treasury company according to Edgar filings, bringing significant institutional capital backing to the treasury accumulation trend. This represents major Silicon Valley money entering the strategic ETH reserve narrative.
• Multiple Bitcoin mining companies pivoted to ETH treasury strategies, with executives describing mining as a "shitty business" compared to ETH accumulation and staking. Companies like Bit Digital, BTC Digital, and BTCT all announced transitions from mining operations to ETH treasury models.
• ESBET trades at a 2.63 premium to net asset value while Tom Lee's company shows 2.19 MNAV, indicating significant premiums investors pay for exposure to these ETH treasury vehicles. Higher premiums create additional buying pressure as companies use proceeds to acquire more ETH.
• Stock prices for ETH treasury companies surged dramatically, with ESBET showing parabolic gains from July onwards after earlier volatility from misinterpreted SEC filings. Trading volumes increased 10x compared to the brief $100 spike, indicating more orderly market behavior and sustained interest.

Historic Crypto Legislation Passes Congress

• The Genius Bill achieved passage through Congress, representing the first major crypto legislation victory in United States history. Trump's declaration of "crypto week" coincided with this landmark stable coin regulation reaching the president's desk for signature.
• Scott Bessent projected the legislation could enable $3 trillion in on-chain stable coins by 2030, a massive expansion from current levels. The bill provides regulatory clarity for stable coin issuers while establishing consumer protection frameworks long sought by the industry.
• Three bills advanced simultaneously: the Genius Bill for stable coins, the Clarity Act defining crypto asset classifications, and anti-central bank digital currency legislation. Some Republicans initially wanted to package all bills together, requiring Trump to secure party unity for passage.
• Representative Maxine Waters launched an "anti-crypto week" campaign, writing MSNBC op-eds warning the legislation "greenlights Trump's billion-dollar crypto grift" and could "invite the next financial crisis." Democratic opposition focused on consumer protection concerns and alleged regulatory capture.
• Elizabeth Warren criticized the Clarity Act, claiming it would allow any New York Stock Exchange company to "opt out of SEC regulation by just digitizing themselves" and putting themselves "on the blockchain." Her statements drew ridicule from crypto advocates who noted fundamental misunderstandings of blockchain technology.
• The legislative victory establishes precedent for future crypto-friendly policy initiatives and signals a dramatic shift from previous administration approaches. Industry leaders expect this foundation to enable additional regulatory clarity across various crypto sectors and use cases.

Coinbase Launches Revolutionary Everything App

• Coinbase unveiled a completely revamped "Base App" positioning itself as a crypto super app combining social, financial, and creator economy features. The application integrates Farcaster social protocol, ENS identity, XMTP messaging, Zora minting, and Uniswap trading capabilities.
• The app functions as a Farcaster client competing with Warpcast while enabling users to mint posts, trade tokens, make payments, and engage in encrypted chat. Brian Armstrong branded it as an "everything app" bringing together narratives from 2015-2016 Ethereum ecosystem development.
• Creator economy integration allows posts to be minted as NFTs with Gary Vee and other creators featured in promotional campaigns. The platform emphasizes how NFTs and creator economies can advance career opportunities through direct fan monetization and content ownership.
• Mini-app functionality positions the Base App to compete with World App and Telegram's TON blockchain ecosystem. The open graph for mini apps enables developers to build experiences within the broader Base App ecosystem.
• Money, identity, social, markets, and communication protocols combine into a unified interface representing crypto's vision of decentralized internet infrastructure. The app demonstrates how various crypto primitives can integrate into user-friendly experiences for mainstream adoption.
• Early user feedback suggests the app targets crypto-native audiences more than mainstream users, though Coinbase's retail reach could drive broader adoption. The success of integrated creator economy features remains to be proven in practice.

Market Dynamics and Institutional Developments

• Total crypto market capitalization reached $3.9 trillion, tying all-time highs achieved four months prior despite Bitcoin dominance remaining elevated. This milestone occurred while many altcoins have yet to reach previous cycle peaks, suggesting potential for broader market expansion.
• Pump Fun completed the third-largest ICO in crypto history, raising $600 million in 12 minutes on Solana. The launch followed EOS ($4.1 billion) and Telegram ($1.7 billion) but faced criticism for underperforming ETH gains post-launch despite successful fundraising.
• Binance launched its own Launchpad on BNB Chain called "Forme," positioning as the "Pump Fun of BNB" and creating additional competition in the meme coin launch space. Multiple platforms now compete for meme coin and token launch market share.
• Snoop Dogg sold $12 million worth of NFT stickers in 30 minutes on TON blockchain through Telegram integration. The collection included vintage cars, digital items, and marijuana-related objects, demonstrating continued celebrity NFT engagement despite market downturns.
• Roman Storm's Tornado Cash trial began with potentially 45-year prison sentence if convicted on conspiracy charges. The case centers on whether developers can be held responsible for how third parties use decentralized protocols they create.
• Poly Market founder Shane Copin was cleared of FBI investigation charges after cooperation with authorities. The case began when FBI raided his apartment eight days after Poly Market accurately predicted election results, raising questions about politically motivated investigations.

The crypto industry achieved unprecedented institutional acceptance and legislative victories while Ethereum emerged as the standout performer through strategic treasury accumulation. These developments position 2025 as a pivotal year for mainstream crypto adoption and regulatory clarity in the United States.