Bitcoin network split, Bybit's lawsuit against North Korea, and Strategy's approach: key events of the week
The past week was rich in landmark events, from a technical split in the Bitcoin network to Bybit's legal démarche against North Korea. I will break down the most significant moments that will shape market sentiment in the near term.
Bitcoin recovered to $65,000 amid institutional demand
The start of the week saw a continuation of the correction: on August 4, the leading cryptocurrency fell below $63,000. However, the downtrend was reversed thanks to a powerful influx of institutional capital. Spot Bitcoin ETFs attracted $853 million, which became the key growth driver. At the time of writing this review, the asset is trading near $65,200 — the highest level since late July.
On-chain data confirms the shift in sentiment: wallets with balances ranging from 10 to 10,000 BTC have accumulated more than 20,000 coins over the past two weeks. Ether also showed solid momentum, with its ETF funds recording their best weekly inflow since mid-April — $244 million. Over the week, Bitcoin rose 3.4%, Ether gained 3.7%, and the Hyperliquid token posted growth of more than 6%. At the same time, the Fear and Greed Index remains in the "fear" zone (31 points), indicating continued potential for further recovery.
BIP-110 soft fork led to a network split
On August 8, the Bitcoin network split at block #961,632. Nodes supporting BIP-110 refused to accept blocks without a signal of support for the proposal. Competing blocks were mined by AntPool and the Ocean pool (the Roughnecks collective). The forked branch faced a serious deficit — 2 blocks versus 48 on the main network over eight hours, making a catch-up scenario unlikely.
Particularly concerning is developer Kevin Loake's warning: both branches accept identical transactions, creating a risk of losing real funds when selling coins from the new network. Support for the proposal was minimal — only 2.53% of blocks signaled it against the required 55%, raising questions about the fork's justification.
Bybit filed a $1.5 billion lawsuit against North Korea
The crypto exchange filed a civil lawsuit in the U.S. District Court for the District of Columbia against North Korea, its intelligence agency, and the Lazarus Group in connection with the February hack of $1.5 billion. The platform is seeking compensation, punitive damages, and treble damages. However, the prospects for recovering funds are bleak: 90.2% of the stolen assets have already passed through mixers and bridges, and only $75.5 million has been frozen.
The scale of the threat extends beyond a single incident. Researcher Vangelis Stykas found traces of North Korean hackers in 1,640 organizations across 57 countries. North Korea already accounts for more than 70% of global crypto thefts — this is a systemic problem requiring a consolidated industry response.
Miners in the red, CLARITY Act postponed
The largest mining companies reported quarterly losses: MARA lost $611 million, CleanSpark — $240 million. The industry is actively diversifying into the AI sector, intensifying competition for electricity. Meanwhile, the U.S. Senate postponed the vote on the CLARITY Act to September 15 — the chances of the law passing this year are estimated at only 21%, but the bill has not yet been removed from the agenda.
My comment: The network split caused by an unprepared soft fork is a worrying signal. It demonstrates that even minor technical changes can destabilize the network amid insufficient consensus. Investors should remain cautious, but the institutional inflow into ETFs speaks to the long-term confidence of major players in the asset.