Crypto market wrapped up its strongest week in two years—Bitcoin rose by approximately 23%

23.08.2026    21:53

The cryptocurrency market ended the week of August 17–23 with a sharp rally: Bitcoin rose by approximately 23%, Ethereum by more than 30%, and a number of major altcoins posted even stronger gains. The main drivers were an influx of funds into U.S. spot cryptocurrency ETFs, a weaker dollar, shifts in the U.S. Treasury market, and positive regulatory signals from Washington.

As of August 23, Bitcoin was trading at approximately $77,200, compared to about $62,900 at the end of the previous week. On August 21, the price 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 approximately $1,880 to $2,460, or by more than 30%. On August 19 alone, the second-largest cryptocurrency by market capitalization gained about 17.5%, and on August 21, it added another 8% or more.

The rally also spread to altcoins. XRP rose by approximately 40% or more over the course of the week, Solana by more than 20%, and Chainlink, Hyperliquid, Dogecoin, and a number of other major digital assets also posted significant gains. Thus, this time the growth was not limited to Bitcoin alone.

One of the key factors was a sharp reversal in inflows into U.S. cryptocurrency ETFs. Over the five trading sessions from August 17–21, spot Bitcoin and Ethereum ETFs in the U.S. attracted a combined total of about $2.6 billion, marking their best weekly performance since October 2025.

Bitcoin ETFs accounted for about $1.92 billion, while Ethereum ETFs accounted for about $697 million. Meanwhile, Bitcoin funds recorded net inflows for all five consecutive trading days. Bitcoin ETF trading volume for the week exceeded $22 billion, more than tripling the previous week’s figure.

The market received an additional boost on August 19 following the U.S. Treasury Department’s decision to increase the volume of long-term Treasury bond repurchases. This led to a decline in yields on some government securities and a weakening of the dollar, while investors stepped up 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 favorable backdrop for cryptocurrencies. During this period, some investors viewed Bitcoin, alongside gold, as part of the so-called “debasement trade”—betting on assets with limited supply amid concerns about U.S. debt and fiscal policy.

The closing of large short positions was also a key factor. Bitcoin’s rapid surge past the $65,000, $70,000, and $75,000 levels forced traders who had bet on further declines to close their positions en masse. According to various estimates, during the most active phase of the rally, over $4 billion in short positions were liquidated in the crypto market, which further accelerated the rally.

The regulatory environment in the U.S. also proved positive for the sector. On August 18, the U.S. Securities and Exchange Commission (SEC) proposed a new specialized framework for certain cryptoasset transactions and offerings. The SEC notes that the goal of the changes is to adapt the rules to the specific characteristics of digital assets, facilitate capital raising, and at the same time maintain investor protection requirements.

Thus, several favorable factors converged in the market within a single week: strong institutional demand driven by ETFs, a weaker dollar, improved liquidity expectations, and a reduction in regulatory uncertainty.

At the same time, the weekend showed that after such rapid growth, investors began to partially lock in profits. After peaking above $79,000, Bitcoin returned to the $76,000–$77,000 range, while Ethereum, after surpassing $2,500, traded around $2,400–$2,500. For now, this looks more like consolidation following a sharp rally than a full-fledged trend reversal.

U.S. monetary policy will be a key test for cryptocurrencies as early as next week. The Jackson Hole economic symposium will take place on August 27–29, and Federal Reserve Chair Kevin Warsh is scheduled to speak on August 28. The market will be closely watching his assessment of inflation, interest rates, and the situation in the bond market.

For Bitcoin, the immediate key resistance zone remains the $79,000–$80,000 range. A sustained move above this level could pave the way for a continued recovery following the decline from record highs in 2025. At the same time, after a gain of more than 20% 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 sustaining the inflow of funds 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 will evolve into a longer-term uptrend.

Fixygen will continue to monitor inflows into cryptocurrency ETFs, Fed policy, the dollar’s performance, and Bitcoin’s behavior around the $80,000 level, all of which could determine the market’s direction in late August.

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