8.23 AI Daily The crypto market is experiencing a comprehensive pump, and regulatory policies continue to tighten.

1. Headlines

1. After Powell's speech, the crypto market surged, and Ethereum broke through $4800 to set a new high.

Powell delivered a speech at the Jackson Hole annual central bank conference, stating that the balance of economic risks is shifting, and there is no preset path for future policy. The Federal Reserve will flexibly adjust based on employment and inflation data. This statement has rekindled market expectations for a rate cut in September, and the cryptocurrency market surged in response.

Ethereum surged rapidly after Powell's speech, reaching a historic high of $4887. Analysts pointed out that the $4700-$4800 range is a high liquidity area for Ethereum, advising investors to avoid emotional buying and focus on medium to long-term allocation. If it falls back to the $4200-$4350 range, it would be considered a healthy turnover zone, where further evaluation of long positions can be made.

In addition, mainstream cryptocurrencies such as Bitcoin and Dogecoin have also seen varying degrees of increase. Analysts believe that Powell's speech was much more "dovish" than expected, and in the short term, the crypto market may enter a phase of re-evaluating interest rate cut expectations. Investors need to closely monitor the policy direction of the Federal Reserve's meeting in September.

2. The Trump administration may hold shares in Intel, raising expectations for a restructuring of the industrial chain.

Informed sources have revealed that the Trump administration and Intel are set to announce details of an agreement on Friday, which will allow the U.S. government to hold equity in the chip manufacturer. The specific arrangements have not been made public, but this move is seen as the U.S. intensifying its strategic layout in the semiconductor industry.

Analysts point out that if the agreement is approved, it will accelerate the restructuring of the semiconductor industry chain. On one hand, government ownership means that Intel's future development will consider national strategic needs more; on the other hand, other chip manufacturers may follow suit, seeking government capital injection to enhance their competitiveness in the global chip war.

At the same time, consumer electronics manufacturers will also face pressure for supply chain adjustments. If Intel prioritizes national demand in the future, the supply of consumer-grade chips may be affected, forcing downstream manufacturers to seek alternative solutions, leading to disruptions in the industry chain.

3. Apple is considering adopting Google's AI model to support Siri, opening the door for third-party cooperation.

According to informed sources, Apple is in preliminary discussions to use Google's models to power an improved version of the Siri voice assistant. If a partnership is ultimately reached, it will mark a key step for Apple in opening the door to more artificial intelligence technologies.

Analysis points out that Apple has been internally developing Siri's AI model for many years, but due to limited data and computing power, Siri's performance has consistently lagged behind competitors. The introduction of Google's large model is expected to break through the bottleneck and significantly enhance Siri's voice recognition, natural language processing, and other capabilities.

However, collaborating with third parties also means that Apple needs to seek a balance between privacy protection and user experience. How to maximize the potential of AI models while ensuring data security will be a new challenge that Apple needs to address.

4. The Bank of Korea plans to cooperate with Tether and Circle to promote the landing of stablecoins in South Korea.

According to reports, South Korea's largest bank is in talks with Tether and Circle to discuss potential stablecoin collaboration and issuance in South Korea. This initiative is seen as a significant step for the South Korean government and financial institutions to formally embrace cryptocurrency.

Analysts say that after stablecoins receive bank support in South Korea, it will benefit their wider recognition and adoption locally. Once stablecoins are in circulation in South Korea, it will pave the way for the application of cryptocurrencies in traditional financial scenarios such as payments and settlements.

At the same time, Korean banks will also benefit from the stablecoin business, gaining new sources of income. However, how to balance regulatory compliance and business innovation to avoid risk exposure will be a new challenge that the Korean banking sector needs to face.

5. Japan plans to amend laws to treat cryptocurrencies on par with stocks, reducing the tax burden on investors.

Japan is planning to amend its tax laws to classify cryptocurrencies in the same category as stocks, in order to reduce the tax burden on investors. In addition, relevant laws will be modified to reclassify cryptocurrencies as financial products, allowing the Financial Services Agency of Japan to regulate them under the Financial Instruments and Exchange Act.

Analysts point out that this move will help attract more investors to participate in the Japanese cryptocurrency market. Currently, Japan classifies cryptocurrency gains as "miscellaneous income" for taxation, with rates potentially exceeding 50%, while stocks and bonds are subject to a unified tax of only 20%. Reducing the tax burden will enhance the attractiveness of cryptocurrency investments.

At the same time, the adjustment of regulatory policies will bring higher transparency and standardization to the Japanese cryptocurrency market, which is beneficial for the long-term healthy development of the industry. However, striking a balance between promoting innovation and preventing risks is a major challenge for regulatory authorities.

2. Industry News

1. Ethereum sets a new all-time high, leading the cryptocurrency market rebound.

On August 23, after Federal Reserve Chairman Powell delivered a dovish speech, the cryptocurrency market experienced a broad rebound. Ethereum's price broke through $4800, setting a new historical high with a 24-hour increase of over 14%. Bitcoin also surged quickly after Powell's speech, briefly breaking through $57000.

Analysts believe that Powell's emphasis on the policy path depending on data suggests that the Federal Reserve may slow down the pace of interest rate hikes, which has fueled market expectations for a rate cut in September. The expectation of loose monetary policy has driven a rebound in risk assets. Ethereum, regarded as the "blue chip" in the cryptocurrency space, has attracted capital, pushing its price to new highs.

At the same time, the continuous development of the Ethereum ecosystem and the ongoing inflow of institutional funds have also provided support for the price increase. Data shows that in the past 24 hours, Ethereum ETF net inflows reached $337 million. Analysts expect that if the macro environment continues to improve, Ethereum is likely to rise further, but caution is also needed regarding potential correction risks.

2. The short-term pullback pressure for Bitcoin is increasing, focusing on the key support at 115,000 USD.

Despite a brief surge in Bitcoin following Powell's speech, analysts warn that the short-term pullback pressure on Bitcoin is increasing. Data shows that in the past 24 hours, there has been a net outflow of $1.178 billion from Bitcoin spot ETFs, putting pressure on the funds.

In addition, the trend of Bitcoin withdrawals has slowed down, with a net inflow of 4,041 Bitcoins into cryptocurrency exchanges in the past 24 hours, indicating that investors are gradually withdrawing their positions. Analysts point out that $115,000 is a key support level for Bitcoin, and if it falls below this level, it may trigger further selling.

However, some analysts hold an optimistic view on the medium to long-term prospects of Bitcoin. The well-known analysis firm wise predicts that by 2035, the price of Bitcoin could rise to $1.3 million, with an annualized return rate of 28.3%. The firm believes that factors such as the continued rise of Bitcoin as an institutional-grade asset, growing demand for hard assets in an inflationary environment, and a fixed increase in supply will drive Bitcoin's long-term growth.

3. The market for altcoins is booming, and investors need to be wary of bubble risks.

As the cryptocurrency market rebounds, altcoins have also shown a strong performance. Data shows that "ETH-related" altcoins have generally surged, with ETHFI rising over 22% in 24 hours, and ETC, ENA, and others also experiencing double-digit increases.

In addition, well-known Meme coins like Shiba Inu have also gained significant profits during forced liquidations. Analysts believe that this short-term surge is likely due to short-selling funds being forced to close their positions, and does not indicate a substantial improvement in the fundamentals.

Investors should be wary of the risks associated with altcoin bubbles. Historically, there have been numerous cases where altcoins have surged rapidly in a short period before quickly falling back. Analysts advise investors to remain rational, manage their risk exposure well, and avoid blindly chasing prices. Meanwhile, some analysts also believe that the performance of altcoins could be worse than expected, which will force the industry to reassess innovation and real use cases.

4. The AI track continues to heat up, becoming a new hotspot in the industry.

In addition to traditional cryptocurrencies, AI(-related crypto projects have also become a hot sector in this market. At the TOKEN2049 conference in Singapore, an increasing number of entrepreneurs and investors are beginning to pay attention to the integration of AI and DeFi.

Analysts point out that although most AI+DeFi projects are still in the "Meme" stage, in the future, there will surely emerge AI crypto ecosystems that can compete with projects like Ethereum. AI technology is expected to bring brand new application scenarios to blockchain, such as image/video generation, computational power enhancement, etc., which will push the entire industry into a new stage of development.

At the same time, some projects focused on AI-native creative economies, such as the $CAMP token from Camp Foundation, have also attracted attention. Analysts believe that the future development prospects of the AI sector are broad, but investors should also be wary of bubble and speculation risks.

Overall, this round of market trends reflects that the cryptocurrency market is gradually emerging from the trough, and investor sentiment has improved. However, it is also necessary to remain vigilant about the potential bubble risks in certain sectors. Investors should maintain rationality, manage their risk exposure, and pay attention to real use cases and long-term value.

3. Project News

) 1. Ethereum breaks historical high, leading the cryptocurrency market rebound.

Ethereum broke through its historical high of $4868 on August 23, leading a rebound across the entire cryptocurrency market. As the second largest asset in the cryptocurrency space, Ethereum's price movements are highly scrutinized.

Latest updates: Ethereum broke through its historical high of $4868 on August 23, and the current price has risen above $4900. The increase in the last 24 hours exceeded 14%, with a total market value surpassing $500 billion. Meanwhile, mainstream cryptocurrencies such as Bitcoin and Solana have also experienced varying degrees of increase.

Project Background: Ethereum is the second largest cryptocurrency developed after Bitcoin, launched by Vitalik Buterin in 2015. It is not only a digital currency but also a decentralized open-source platform that supports the operation of smart contracts and decentralized applications (DApp) ###. The innovation of Ethereum lies in its programmability, which opens up new possibilities for the development of blockchain technology.

Market Impact: The surge of Ethereum has triggered a rebound in the entire cryptocurrency market. As the "blue chip" of cryptocurrencies, the price fluctuations of Ethereum often lead the trend of the entire market. This breakthrough of historical highs not only boosts investor confidence but also injects new momentum into the development of the Ethereum ecosystem.

Industry feedback: Cryptocurrency analysts generally believe that Ethereum's surge is primarily benefiting from its strong fundamentals. The Ethereum ecosystem continues to grow, with applications such as DeFi and NFTs emerging continuously, laying the foundation for long-term value growth of Ethereum. However, some analysts also remind investors to be cautious of market volatility and to view price fluctuations rationally.

( 2. The Sui network leads the development of the Move ecosystem, attracting the attention of developers.

Sui Network, as one of the most representative projects in the Move ecosystem, has recently developed rapidly, attracting widespread attention both within and outside the industry.

Latest Updates: During the TOKEN2049 conference in Singapore, the Sui ecosystem projects Cetus and others sparked heated discussions. Meanwhile, the Sui Foundation announced the launch of the SuiPlay gaming exhibition area, setting up the largest gaming booth at the KBW conference in South Korea. These actions are all aimed at promoting the Sui network and attracting more developers to join the Move ecosystem.

Project Background: Sui is a brand new blockchain developed by Mysten Labs, with its testnet launched in May 2022. It is built on the Move language, which was originally developed by Meta)Facebook### to support the Diem( cryptocurrency project, previously known as Libra). The main innovation of the Sui network is the adoption of a new parallel execution engine, significantly increasing transaction throughput.

Market Impact: As the most representative project in the Move ecosystem, the development of Sui will directly impact the future of the Move ecosystem. If Sui can continue to attract developers to join and launch more high-quality applications, it will surely promote the prosperity of the Move ecosystem. Conversely, if Sui develops slowly, the Move ecosystem will also be affected.

Industry feedback: Industry insiders generally believe that the Sui network has a good development prospect. The high performance and security of the Move language, combined with the innovative design of the Sui network, provide a solid technical foundation. However, some analysts point out that there are currently few tradable assets on Sui, and ecological construction still requires time.

( 3. Camp Foundation launches the AI-native token CAMP to build a creative economy engine.

Camp Foundation recently launched the AI native token CAMP, aiming to create an AI-driven creative economy engine.

Latest Updates: Camp Foundation announces the launch of the CAMP token as the core driving force of the Cam network. The CAMP token will be applied in multiple scenarios such as on-chain transactions, network security, and IP licensing. Users can use CAMP to pay Gas fees, participate in staking, achieve IP tokenization, and share royalties. The airdrop registration for the CAMP token has already begun.

Project Background: Camp Foundation is a project focused on the integration of AI and We, founded by former OpenAI employees. The project aims to create an AI-native creative economy engine, enabling creators to better utilize AI technology for their creations and profit from it. The Cam network will support various creative content, including text, images, audio, video, and more.

Market Impact: The launch of the CAMP token marks the official entry of the Cam network into the operational phase. If the Cam network can successfully attract a large number of creators, it will greatly promote the integrated development of AI and We. At the same time, the Cam network may also bring a new business model to the creative industry.

Industry feedback: Industry insiders have welcomed the idea of Cam Network. The development of AI technology has brought new opportunities to the creative industry, and We can provide creators with a fairer revenue distribution mechanism. However, some analysts are concerned that AI-generated content may infringe on intellectual property rights. The specific practices of Cam Network in this regard remain to be observed.

) 4. The IoTeX ecosystem project IOTX has been listed on Nasdaq, promoting institutional capital attention.

The IoTeX ecosystem token IOTX was opened for trading on Nasdaq on August 23, becoming the first We public chain token listed on Nasdaq.

Latest updates: The IoTeX ecosystem token IOTX started trading on Nasdaq on August 23, with the trading code IOTX. This is the third cryptocurrency asset to be listed on Nasdaq after Bitcoin and Ethereum. The listing of IOTX on Nasdaq marks its opening for trading to institutional and professional investors.

Project Background: IoTeX is an open-source project aimed at the Internet of Things, designed to bring trusted, real-time physical world data into AI systems and applications. The project was launched in 2017 and currently supports over 100 projects and more than 40 million devices, covering areas such as transportation, robotics, energy, and health. IoTeX has formed partnerships with companies like Google, Samsung, IEEE, and ARM.

Market Impact: IOTX is listed on NASDAQ, which not only expands IoTeX's influence in the global capital market but also signifies its opening for trading to professional investors and institutions. This will bring more institutional capital attention and support to IoTeX, accelerating the adoption process of its ecosystem globally.

Industry feedback: Industry insiders generally believe that IOTX's listing on NASDAQ is an important milestone in the development of the IoTeX ecosystem. As the first We public chain token to be listed on NASDAQ, IOTX will serve as a reference for other quality projects. However, some analysts have pointed out that after the listing, IOTX needs to maintain good liquidity and trading activity to attract more institutional funding.

4. Economic Dynamics

1. Powell sends dovish signals at the Jackson Hole meeting

Federal Reserve Chairman Jerome Powell spoke at the Jackson Hole Economic Policy Symposium, suggesting that the Fed may soon consider lowering interest rates. He stated that while inflation has eased, it still remains above the 2% target, and there is still uncertainty in the labor market. Powell emphasized that the future policy path will depend on economic data, and the Fed will adjust its rate decisions flexibly.

Currently, the U.S. economy is in a "peculiar equilibrium" state. GDP growth has slowed to 2.4%, but the labor market remains strong, with the unemployment rate holding at a low of 3.5%. The inflation rate has fallen from the June peak of 9.1% to 8.5%, but is still far above the 2% target. Powell stated that if the labor market continues to soften, the Federal Reserve may need to adjust its policy stance.

Powell's dovish remarks have reignited market expectations for a rate cut in September. Investors anticipate that the Federal Reserve will raise rates by another 25 basis points in September, but may pause the rate hike cycle for the remainder of the year. The US stock and cryptocurrency markets surged following Powell's speech.

Goldman Sachs chief economist Jan Hatzius stated that Powell's speech has opened the door for interest rate cuts this year. However, he warned that if employment data remains strong, the Federal Reserve may delay the timing of rate cuts.

2. European Central Bank Governing Council member Rehn hinted that there is no need for "precautionary rate cuts"

ECB Governing Council member Rehn stated that there is no need for "preemptive rate cuts" as the inflation rate has reached the 2% target. His remarks suggest that the ECB may not follow the Federal Reserve in cutting rates for the time being.

The annualized GDP growth rate for the Eurozone in the second quarter is 0.6%, lower than the expected 1.1%. However, the job market remains strong, with the unemployment rate holding steady at a low of 6.6%. Although the inflation rate has fallen from last month's 8.9% to 8.5%, it still remains well above the 2% target.

ECB President Lagarde previously stated that the European Central Bank will continue to raise interest rates until inflation clearly declines. The market expects the ECB to raise rates by another 75 basis points in September.

David Folkerts-Landau, the chief eurozone economist at Deutsche Bank, stated that the European Central Bank faces the challenge of curbing inflation while avoiding triggering an economic recession. He expects the European Central Bank to end its interest rate hike cycle in the first half of next year.

3. China's industrial profits in July fell by 19.5% year-on-year.

According to data from the National Bureau of Statistics of China, profits of industrial enterprises above designated size fell by 19.5% year-on-year in July, with the decline widening compared to the previous month. From January to July, cumulative profits of industrial enterprises decreased by 6.7% year-on-year.

The Chinese economy is facing internal and external pressures. Exports have been affected by weak global demand, with a 14.5% year-on-year decline in July. Domestic consumption and investment are also sluggish, with a year-on-year growth of 2.7% in the total retail sales of consumer goods in July, which is below expectations.

The decline in industrial profits is mainly attributed to rising raw material prices, weak demand, and overcapacity in certain industries. By industry, profits in the mining sector fell by 67.9% year-on-year, the raw materials manufacturing sector decreased by 38.5%, and the consumer goods manufacturing sector declined by 4.6%.

Chen Xiaonan, Deputy General Manager of the Macroeconomic Research Department of China International Capital Corporation, stated that the continuous decline in industrial profits will affect corporate investment and employment, posing a downside pressure on the economy. He expects that in the second half of the year, the government will intensify policy efforts to promote economic stabilization and recovery.

4. Japan plans to include cryptocurrency tax system reforms in its 2026 tax revision proposal.

According to a report by Nikkei, Japan's Financial Services Agency plans to incorporate cryptocurrency tax reform into the 2026 tax revision proposal. The proposal is expected to combine tax changes with stricter regulations and may introduce ETFs linked to cryptocurrencies.

The reform plan consists of two key components. First, it includes a revision of the tax law, changing the classification of cryptocurrencies from comprehensive tax to the same category as stocks. Second, it includes a legal amendment that reclassifies cryptocurrencies as financial products, allowing the Financial Services Bureau to apply insider trading rules, disclosure standards, and investor protection measures under the Financial Instruments and Exchange Act.

Currently, Japan classifies cryptocurrency gains as "miscellaneous income" for taxation, with a progressive tax rate that may exceed 50% once local taxes are included. In contrast, stocks and bonds are subject to a flat tax rate of 20%.

The president of the Japan Cryptocurrency Exchange Association, Hiroshi Hashimoto, stated that a unified tax rate would provide greater certainty for investors and benefit the development of the cryptocurrency market. However, he also warned that excessive regulation could hinder innovation.

5. Regulation & Policy

1. The U.S. Securities and Exchange Commission's cryptocurrency task force is conducting a nationwide tour.

The U.S. Securities and Exchange Commission (SEC) cryptocurrency special task force is conducting a nationwide tour, holding a series of roundtable meetings. The task force aims to listen to groups that have previously been unable to travel to Washington to participate in roundtable discussions, as well as voices that may have historically been underrepresented in other policy-making processes.

Policy Background: The SEC's Cryptocurrency Special Working Group was established in 2022 to coordinate internal regulatory efforts on crypto assets. This working group is directly led by SEC Chairman Gary Gensler and is responsible for developing a regulatory framework for crypto assets. With the rapid development of the cryptocurrency market and the increasing demand for regulation, the SEC aims to formulate a more comprehensive and fair regulatory policy through extensive consultation.

Policy Content: This tour will hold roundtable meetings across the country, inviting practitioners, investors, scholars, and other stakeholders in the cryptocurrency industry to participate in discussions. The meetings will explore various aspects of cryptocurrency asset regulation, including investor protection, market fairness, anti-money laundering, and counter-terrorism financing. The working group will collect opinions and suggestions from all parties to provide references for the future regulatory framework.

Market reaction: The cryptocurrency industry welcomes the SEC's recent move. Industry insiders believe this is a positive signal of the SEC's effort to establish a more open and inclusive relationship with the industry. However, some are concerned that the SEC may adopt overly strict regulatory measures that could limit innovation and development in the cryptocurrency market.

Expert Opinion: Cryptocurrency legal experts believe that the SEC's recent move reflects a willingness of regulatory agencies to listen to the voices of the industry. However, they also point out that the SEC needs to balance the demands of investor protection and industry development when formulating regulatory frameworks to avoid overregulation. Some scholars have called for the SEC to strengthen coordination with other regulatory agencies to establish unified regulatory standards.

2. The Japan Financial Services Agency plans to reform the cryptocurrency tax system.

According to local Japanese media reports, the Financial Services Agency (FSA) of Japan plans to incorporate cryptocurrency tax reform into its 2026 tax revision proposal. The proposal is expected to combine tax changes with stricter regulations and may introduce ETFs linked to cryptocurrencies.

Policy Background: Currently, Japan categorizes cryptocurrency gains as "miscellaneous income" for taxation, with a progressive tax rate that, once local taxes are included, may exceed 50%. In contrast, stocks and bonds are subject to a uniform tax of 20%. This difference in tax treatment is considered detrimental to the development of the cryptocurrency industry. The FSA hopes to create a fairer environment for cryptocurrency investors through tax reform.

Policy Content: The reform plan includes two key components. First, it involves amending the tax law to classify cryptocurrencies in the same category as stocks, rather than as comprehensive tax. Second, it includes a legal amendment that reclassifies cryptocurrencies as financial products, allowing the FSA to apply internal trading rules, disclosure standards, and investor protection measures under the Financial Instruments and Exchange Act.

Market reaction: The cryptocurrency industry has welcomed this reform. Industry insiders believe that a unified tax rate will provide greater certainty and fairness for investors. At the same time, classifying cryptocurrencies as financial products will also help strengthen regulation and investor protection. However, some are concerned that stricter regulation may limit innovation in the cryptocurrency market.

Expert Opinion: Tax experts indicate that this reform will help simplify the tax treatment of cryptocurrency investments and reduce compliance costs for investors. However, they also point out that if the tax rate is too high, it may hinder the development of the cryptocurrency market. Legal experts believe that classifying cryptocurrencies as financial products is a reasonable move that will help strengthen regulation and maintain market order.

3. The EU is considering launching a digital euro on Ethereum or Solana.

According to reports, the European Union is considering using public blockchains, such as Ethereum or Solana, to enhance the accessibility of its digital euro in response to global competition. This decision has raised concerns about privacy and regulation, especially following the U.S. GENIUS Act targeting stablecoins.

Policy Background: The digital euro is a digital version of the euro that the European Central Bank plans to issue, aimed at addressing the payment needs of the digital age. The EU hopes that the digital euro can enhance the euro's position in international payments and settlements, strengthening its influence in the global financial system. At the same time, the digital euro is also seen as a measure to respond to privately issued cryptocurrencies and stablecoins.

Policy content: According to reports, the European Union is considering issuing a digital euro on public blockchains such as Ethereum or Solana to enhance its accessibility and usability. This decision aims to better integrate the digital euro into the cryptocurrency ecosystem and attract more users. However, it has also raised concerns regarding privacy and regulation, as the transparency of public blockchains could impact user privacy.

Market reaction: The cryptocurrency industry holds a cautiously optimistic attitude towards the EU's move. On one hand, the issuance of the digital euro on public blockchains will bring more liquidity and use cases to the cryptocurrency ecosystem. On the other hand, there are concerns that this may increase regulatory pressure and limit the development space of the cryptocurrency market.

Expert Opinion: Blockchain experts believe that the issuance of a digital euro on public blockchains by the EU is an innovative attempt, but it also faces technical and regulatory challenges. They suggest that the EU should collaborate closely with the industry to ensure that the design of the digital euro balances privacy protection and regulatory compliance. Meanwhile, financial law experts indicate that the launch of the digital euro may impact the existing financial regulatory framework, requiring corresponding legal adjustments.