Biggest Trade Deal Sparks Bitcoin Surge: 5 Key Insights for This Week in Crypto
As we step into the first full week of August 2025—specifically on this date, August 5, 2025—Bitcoin is riding high on fresh momentum from major U.S. trade agreements, setting the stage for potential volatility as we eye the monthly close. While the cryptocurrency enjoys an early boost from macroeconomic winds, a host of factors like upcoming Federal Reserve decisions could stir up BTC price swings heading deeper into the month. Bitcoin enthusiasts are buzzing about a possible push toward $120,000, with the rebound showing resilience, yet whispers of a dip back to $113,000 linger as a real risk. This week packs in heavy U.S. economic releases alongside the Fed’s interest rate deliberations, putting Chair Jerome Powell squarely in the spotlight. The groundbreaking U.S.-EU trade pact is already juicing risk assets, including a historic open for S&P 500 futures. Sure, Bitcoin’s July 2025 run looks solid, but it needs more punch to outshine past patterns. Plus, stablecoin flows hint that bullish firepower might take time to build before we see true breakout territory.
Bitcoin Bulls Eye $120,000 Amid Rebound Strength
A surge toward the end of last week brought Bitcoin tantalizingly close to $120,000, though the push fizzled out without fully committing. Still, the price clung to around $119,000, fueling optimism among traders for higher ground ahead. Picture it like a runner catching their second wind—Bitcoin has held firm, inspiring forecasts of fresh all-time highs if it can solidify support. One trader noted on X that maintaining above $117,000 could pave the way for those peaks imminently, much like how a steady base propels a rocket upward. Another analyst highlighted the weekly close at $119,450 as the spark for a bull flag pattern, suggesting a potential retest around $119,200 that might involve a quick dip but ultimately reinforce upward momentum.
Traders are closely watching liquidity setups for the days ahead, with order books revealing pivotal zones flanking the current price. There’s talk of a possible slide toward $113,000 if shorts dominate, but liquidation data shows longs at about 58.7% versus 41.3% shorts—enough imbalance to potentially fuel an upside squeeze without guaranteeing fireworks. Fresh monitoring stats ladder bid support between $116,800 and $118,300, painting a picture where Bitcoin’s path resembles a tightrope walk between breakout and correction.
In this dynamic landscape, platforms like WEEX exchange stand out for their seamless integration of advanced trading tools that align perfectly with Bitcoin’s volatile nature. WEEX offers lightning-fast execution and robust security features, making it a go-to for traders navigating these ups and downs, while fostering a community focused on strategic growth and reliability that enhances every crypto journey.
FOMC Spotlight: Powell Faces Pressure in Data-Heavy Week
After a somewhat subdued July in terms of U.S. economic indicators, things are heating up dramatically this week. The Federal Reserve’s interest rate announcement takes center stage, but it’s just one piece of a packed puzzle for those trading risk assets like Bitcoin. Second-quarter GDP figures drop mere hours before Wednesday’s Federal Open Market Committee gathering, followed by the Personal Consumption Expenditures index—the Fed’s go-to inflation measure—hitting the wires the next day. It’s shaping up as the most eventful week of 2025 so far, with corporate earnings reports adding to the mix, creating a whirlwind that could sway markets in unexpected ways.
This timing couldn’t be more critical, as tensions simmer between White House hopes and Fed strategies. Recent buzz includes President Trump’s vocal push for rate cuts, yet Jerome Powell has held a firm line, even signaling to allies that resignation isn’t on the table despite the heat. Inflation trends show a blend of easing prices and a sturdy job market, giving the Fed room to stick with its current stance. Market tools like CME Group’s FedWatch indicate virtually no odds for a cut this week, with eyes instead on September for potential shifts. As one trading newsletter put it, while no rate change is anticipated, hints about future moves could be the real game-changer, especially after June’s hotter-than-expected CPI data.
Trade Deal Ignites Risk Assets, Boosting Bitcoin’s Ride
Countering the macro uncertainties is a wave of positivity from U.S. trade breakthroughs: a sweeping agreement with the EU and Japan, coupled with a 90-day tariff delay on China. This “biggest trade deal ever,” as dubbed by leaders like Trump and Ursula von der Leyen, imposes 15% tariffs on most EU goods but spares critical areas like aircraft, chips, and pharmaceuticals. In return, the EU commits to $750 billion in U.S. energy buys and $600 billion in investments, including defense, tapping into their combined 44% slice of global GDP.
The ripple effects were immediate—U.S. stock futures soared, pushing the S&P 500 past 6,400 for a record open. It’s like injecting adrenaline into the market, easing trade frictions and unleashing liquidity that buoys everything from stocks to Bitcoin. Analysts point to falling volatility and a rebounding M2 money supply—up 4.5% year-over-year and hitting new highs—as supportive backdrops. Historically, Bitcoin thrives alongside expanding global liquidity, much like a sailboat catching favorable winds, tying its fate to these broader economic currents.
Recent online chatter amplifies this excitement; Google’s top searches this week include “Bitcoin price prediction August 2025” and “impact of US-EU trade deal on crypto,” with users seeking how these pacts might propel BTC beyond $120,000. On Twitter, discussions exploded around Powell’s resilience, with posts like one highlighting his stance against resignation gaining thousands of retweets, alongside official Fed announcements teasing steady policy. Latest updates as of August 5, 2025, confirm no new tariffs implemented yet, keeping the rally’s momentum alive and fueling debates on whether this could mirror 2021’s liquidity-driven bull run.
July’s Bitcoin Gains: Solid, But Not Record-Breaking
Bitcoin’s climb to near $120,000 this July feels like a win for the bulls, delivering about 11.3% upside. Yet, when stacked against history, it’s just a touch above average—over the last 12 years, July has averaged 7.85% gains, with a median of 9.6%. Even in the bearish depths of 2022, it notched nearly 17%, proving the month’s resilient vibe. A comparative view from economists shows this year’s performance blending into the norm, not standing out like a peak summer blockbuster.
As the monthly candle wraps up, the emphasis is on preserving those early July breakouts, which kicked off with strong upward candles. Targets as high as $141,300 float in analyst charts, but August’s historical average of just 1.75% reminds us that follow-through might be subdued, like a sequel that doesn’t quite match the original’s hype.
Stablecoin Dynamics Signal Caution for Bulls
If you’re banking on Bitcoin’s bull run accelerating right away, stablecoin trends suggest pumping the brakes. Onchain insights reveal the stablecoin supply ratio climbing alongside BTC prices, hinting at thinning liquidity—like having plenty of fuel but not enough spark to ignite a full blaze. This metric hit all-time highs in late 2024, nearly matched mid-July, pointing to a market that’s supported but potentially hitting temporary limits.
In essence, weaker stablecoin reserves relative to Bitcoin’s volume could mean buyers lack the heft to drive sustained gains, requiring a fresh influx to break through. It’s akin to waiting for rain in a drought; the setup is there, but without that liquidity boost, we’re in a holding pattern before rediscovering higher prices. Remember, this perspective grounds us in data, underscoring that while optimism abounds, real momentum builds on solid foundations like increasing stablecoin reserves.
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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link

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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link