The cryptocurrency market ended the week of 17–23 August with a sharp rise: Bitcoin rose by approximately 23 per cent, Ethereum by more than 30 per cent, whilst a number of major altcoins posted even stronger gains. The main drivers were an inflow of funds into US spot cryptocurrency ETFs, a weaker US dollar, developments in the US government bond market, and positive regulatory signals from Washington.
As of 23 August, Bitcoin was trading at around $77,200, compared with around $62,900 at the end of the previous week. On 21 August, prices rose to $79,300, marking a three-month high. As a result, BTC posted its best weekly performance in more than two years. Ethereum rose even faster. ETH climbed from around $1,880 to $2,460, an increase of more than 30 per cent. On 19 August alone, the second-largest cryptocurrency by market capitalisation gained around 17.5 per cent, and on 21 August – a further 8 per cent.
The rally also spread to altcoins. XRP rose by around 40 per cent or more over the course of the week, whilst Solana rose by more than 20 per cent; Chainlink, Hyperliquid, Dogecoin and a number of other major digital assets also showed significant growth. Thus, this time the growth was not limited to Bitcoin alone. One of the main factors was a sharp reversal in inflows into US cryptocurrency ETFs. Over the five trading sessions from 17 to 21 August, spot Bitcoin and Ethereum ETFs in the US attracted a combined total of around $2.6 billion, marking their best weekly performance since October 2025.
Bitcoin ETFs accounted for around $1.92 billion, whilst Ethereum ETFs accounted for around $697 million. Meanwhile, Bitcoin funds recorded net inflows on all five consecutive trading days. Trading volume in Bitcoin ETFs for the week exceeded $22 billion, more than tripling the previous week’s figure. The market received a further boost on 19 August following the US Treasury’s decision to increase the volume of long-term Treasury bond buybacks. This led to a fall in yields on some government bonds and a weakening of the dollar, whilst investors stepped up their purchases of gold and Bitcoin as alternative assets.
According to Reuters, by the end of the week the dollar had fallen to a three-month low against the euro, which also created a favourable backdrop for cryptocurrencies. During this period, Bitcoin was viewed by some investors, alongside gold, as part of the so-called ‘debasement trade’ — a strategy of investing in assets with limited supply against a backdrop of concerns over US debt and fiscal policy.
The closing out of large short positions was also a key factor. Bitcoin’s rapid rise through the $65,000, $70,000 and $75,000 levels forced traders who had bet on a further decline to close out their positions en masse. According to various estimates, during the most active phase of the rally, more than $4 billion worth of short positions were liquidated in the crypto market, which further accelerated the rise.
The regulatory backdrop in the US also proved positive for the sector. On 18 August, the US Securities and Exchange Commission (SEC) proposed a new specialised regime for certain transactions and offerings involving crypto-assets. The SEC notes that the aim of the changes is to adapt the rules to the specific characteristics of digital assets, facilitate the raising of capital and, at the same time, maintain investor protection requirements.
Consequently, several favourable factors converged in the market within a single week: strong institutional demand via ETFs, a weaker dollar, improved expectations regarding liquidity, and a reduction in regulatory uncertainty.
At the same time, the weekend showed that, following such rapid growth, investors began to take some profits. After peaking at over $79,000, Bitcoin returned to the $76,000–$77,000 range, whilst Ethereum, after breaching $2,500, was trading around $2,400–2,500. This currently looks more like consolidation following a sharp rally than a full-blown trend reversal.
US monetary policy will be a key test for cryptocurrencies as early as next week. An economic symposium will take place in Jackson Hole on 27–29 August, and a speech by Federal Reserve Chairman Kevin Worsh is scheduled for 28 August. The market will be closely watching his assessment of inflation, interest rates and the situation in the bond market.
For Bitcoin, the $79,000–$80,000 range remains the most immediate key resistance zone. A sustained move above this level could pave the way for a continued recovery following the decline from the record highs of 2025. At the same time, following a rise of more than 20 per cent in a single week, the risk of a short-term correction remains high.
For Ethereum, the key will be holding the $2,300–2,400 range and continued inflows into spot ETH ETFs. It is the resilience of institutional demand following the best week for ETFs in 2026 that will determine whether the current rally develops into a longer-term uptrend.
Fixygen will continue to monitor flows into cryptocurrency ETFs, Fed policy, the dollar’s performance and Bitcoin’s behaviour around the $80,000 level, all of which could determine the market’s direction in late August.