While the market was correcting, events capable of reshaping the industry landscape were unfolding in the shadows. From institutional interest in Japan to tactical maneuvers by a major market maker, I break down the key overnight news that will set the tone for the upcoming trading session.
Market in the red zone: correction continues
Bitcoin (BTC) was trading near $79,088 at 09:00 Moscow time, losing 2.04% over the day. During the day, the asset fluctuated in the range of $77,850–$80,800, indicating sustained high volatility. Ethereum (ETH) fell 1.79% to $2,465, with quotes dropping overnight to $2,415 from a local high of around $2,510.
Altcoins showed even weaker dynamics. Among the top 25 by market capitalization, the biggest decliners were Stellar (XLM) at 7.62%, Cardano (ADA) at 7.15%, and Zcash (ZEC) at 7.05%. Dogecoin (DOGE) lost 6.38%. The only notable exception was Hyperliquid (HYPE), which gained 2.23%. In the top 100, the LayerZero token (ZRO) stood out with a 9.94% rise, while Monad (MON) plunged 10.7%.
Fund flows into ETFs were positive: Bitcoin funds attracted $314.37 million, Ethereum — $179.8 million, Solana — $32.25 million. This suggests that institutional players view the decline as an entry opportunity.
Japan prepares blockchain infrastructure for financial settlements
The Japanese government, the Bank of Japan, and the country's financial regulators have announced the launch of a working group to develop next-generation blockchain infrastructure. The system will be designed for round-the-clock real-time settlements for government bonds, stocks, and other assets.
The plan for shaping the architecture and interaction framework between the government, central bank, and market participants is expected to be ready by early 2027. This is the first time the country has set specific timelines for integrating blockchain into the financial system. Previously, only experiments were conducted; now the focus is on full institutionalization of the technology.
Kraken hit by "dust attack"
Crypto exchange Kraken temporarily blocked access for some clients following a series of small transactions from a wallet that Arkham Intelligence analysts linked to HTX. Between August 17 and 24, approximately 12,000 micro-transfers ranging from a few cents to a couple of dollars were sent to Kraken addresses.
Kraken representatives characterized the incident as a "dust attack," suggesting its goal may have been to distribute sanctioned funds and test other platforms' responses. Access to the affected accounts has been restored, but the funds in them remain frozen. HTX denied any involvement in the transfers, citing a possible address-mapping error or malicious actors' actions.
Wintermute reduces short positions on Hyperliquid
Market maker Wintermute sharply reduced its short position volume on the Hyperliquid platform from $211.53 million to $80.48 million — a reduction of $131 million. Meanwhile, long positions in HYPE grew from $5.60 million to $10.20 million. The company's current unrealized loss on its portfolio on this platform is estimated at $568,800.
My comment: Wintermute's actions are a classic sign of easing bearish pressure. A major player is closing shorts ahead of a possible reversal or at least locking in profits. Combined with ETF inflows and institutional initiatives like Japan's, the market is likely in an accumulation phase. The correction may be the last opportunity to enter before a new impulse.