August 2025 Market Update: Rate Cuts, Crypto Shakeups & Strategy Wins

Welcome to the August 2025 edition of the Diamond Pigs Monthly Newsletter!

Markets are moving fast with talk of rate cuts, new crypto regulations, and a battle between Bitcoin and Ethereum. We’ve broken down what this means for your portfolio and where new opportunities could appear. Let’s dive in!

📌 In This Issue

• Rate Cut or Stagflation? - Macro pressures intensify.
• Crypto Correction Deep Dive - What’s behind the recent selloff?
• USDC’s Regulatory Win - The Genius Act explained.
• Ethereum Leads the Charge - Is altseason about to explode?
• Diamond Pigs Strategies Outperform - See this quarter’s results.
• Help Us Improve - Quick 2-minute survey!
• Piggy AI Support - Here 24/7 to assist you.

Global Market Update

Global markets are navigating a complex mix of rate cut hopes and renewed macroeconomic headwinds. Traders are now pricing in a 90% chance that the Federal Reserve will cut rates by 0.25% in September, driven by recent data signaling a slowdown in economic growth. However, this optimism is being clouded by a resurgence of inflation worries, as sticky price pressures continue to challenge central banks’ ability to ease policy without reigniting inflationary risks.

Adding to the volatility, President Trump’s announcement of new tariffs has stirred global trade tensions, sending shockwaves through equity markets and amplifying risk-off sentiment. While traditional markets wobbled, crypto assets reacted sharply, underscoring their heightened sensitivity to macro shifts.

Complicating the picture further are rising stagflation fears, with investors grappling with the possibility of stagnant economic growth coupled with persistent inflation. This has already impacted Bitcoin’s options market, where long-term bullish bets have seen a significant decline, reflecting growing investor caution.

Crypto Market Highlights

Market Correction - What Happened?

The crypto market faced a sharp correction last week, with Bitcoin slipping below $115K after struggling to hold its ground amidst mounting pressures. The initial recovery to the $117K–$119K range was short-lived as traders awaited the Federal Reserve’s rate decision, which ultimately held rates steady for the fifth consecutive time. Adding to the tension, a stronger-than-expected US GDP report fueled speculation, while President Trump’s announcement of new tariffs intensified market jitters. Profit-taking after recent rallies, combined with rising macroeconomic uncertainty triggered a broad selloff. Bitcoin dropped over 2% for the week, while many altcoins faced even steeper declines, underscoring a risk-off mood across the crypto space.

Regulatory Win: The Genius Act

The recent passing of the Genius Act has given the crypto industry a much-needed boost of clarity. This new law establishes a clear legal framework for stablecoins like USDC, ensuring they are properly regulated and integrated into the financial system.

The announcement was seen as a major positive signal for the market and is widely considered the key trigger behind the short-lived price surge in July. While the momentum was brief, it highlighted how regulatory clarity can quickly shift market sentiment.

Ethereum Leads as Altseason Hangs in the Balance

Ethereum is back in the spotlight, soaring 180% from $1,400 to $3,923, now just 19% away from its all-time high. Institutional treasuries like BitMines are locking up over $833M in ETH, while whales shift capital from Bitcoin to Ethereum, fueling momentum. Retail activity is also picking up, signaling broader interest.

Even with stagflation fears weighing on markets, Ethereum ETFs saw $73M in inflows, contrasting Bitcoin’s $196M in outflows — a clear sign of capital rotation.

However, with Bitcoin slipping below key support, caution remains. If BTC stabilizes, altcoins—led by ETH—could surge. If not, the market might consolidate before the next move. Ethereum’s fundamentals are strong, but timing will be key.

Diamond Pigs Multiple Strategies Performance: Last 3 Months

The past 3 months, Diamond Pigs strategies have navigated the volatility with solid returns, particularly benefiting from strong market momentum in July. We were well-positioned early in the month to capitalize on the sharp upward spike.

• 🥇 Top 3 Crypto Protect: +49.8% - Exceptional gains mainly driven by Ethereum's surge.
• 📈 Top 10 Crypto Index: +31.7% - Broad market rally captured, with Ethereum, XRP, and BNB among the top performers.
• 🐸 Meme Coins Protect: +31.1% - A few well-timed trades in BONK and WIF fueled solid returns.
• 🔀 Crypto Mix Protect: +23.1% - Steady performance, boosted by standout trades in CVX and Aave, among other strong performers.
• ₿ Bitcoin Only: +21.1% - While positive, it lagged behind our diversified and protection-focused strategies.

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Best regards,
The Diamond Pigs Team