In early Aug, U.S. Treasury’s OFAC added Tornado Cash to its Specially Designated Nationals (SDN) list, throwing into question crypto’s promise of permissionless peer-to-peer interactions. August may be considered a short-term reversal after the strong July rally, but the OFAC action will have long-term consequences which are only beginning to play out.

Crypto markets have rallied in line with the improvement in macro assets. One of the most important upcoming events, The Merge, is finally nearing its completion.

June was volatile for the digital assets market. But with evidence indicating that marginal liquidity seekers may be exhausted, a strong foundation may be forming.