Bitcoin network split, Bybit's lawsuit against North Korea, and miners' decline: the main events of the week
The outgoing week was rich in events: the Bitcoin network experienced a split due to the BIP-110 soft fork, Bybit filed a multi-billion dollar lawsuit against North Korea, and the U.S. Senate postponed a fateful vote on the CLARITY Act. I break down the key trends and their implications for the market.
Bitcoin recovered to $65,000
The start of the week was marked by a continued correction: on August 4, the leading cryptocurrency dropped below $63,000. However, subsequent days showed that the bearish momentum had faded, and the asset consolidated in a narrow range of $62,000-$63,000. On-chain data from Glassnode confirmed the prolonged nature of the decline, recording a record-long capitulation phase. At the same time, analysts rightly warned: falling volatility is not a lull, but a harbinger of a sharp move.
The reversal was driven by institutional money. Spot Bitcoin ETFs attracted $853 million over the week, while CryptoQuant data pointed to active accumulation of BTC, Ethereum, and XRP by large holders. Wallets with balances from 10 to 10,000 BTC have acquired more than 20,000 coins since July 29. Ethereum funds also posted their best weekly inflow since mid-April — $244 million. By the end of the week, Bitcoin rose 3.4%, Ether — 3.7%, and the Hyperliquid token saw a gain of more than 6%. Market capitalization increased from $2.16 trillion to $2.22 trillion, while the fear and greed index remains in the "fear" zone at 31.
Split in the Bitcoin network due to BIP-110
On August 8, the network of the leading cryptocurrency split at block #961,632. Nodes supporting BIP-110 refused to accept blocks without a signal of support for the proposal. Competing blocks from AntPool and the Ocean/Roughnecks pool led to a temporary fork. The separated branch, which mined only two blocks in eight hours versus 48 on the main network, faced insurmountable mining difficulty. Support for the proposal was initially minimal — only 2.53% of blocks against the required 55%.
Developer Kevin Loak warned of a critical risk: both branches accept identical transactions, opening opportunities for replay attacks and loss of funds. This is a serious lesson for the community about the risks of hard forks without consensus.
Bybit vs. North Korea: legal battle for $1.5 billion
Bybit filed a civil lawsuit against North Korea, its intelligence agency, and the Lazarus Group in the U.S. District Court for the District of Columbia. Documents filed as early as June 18 were only declassified in early August. The exchange demands the return of the stolen $1.5 billion, compensation, and treble damages under the Racketeer Influenced and Corrupt Organizations Act. However, by the time the lawsuit was filed, 90.2% of the funds had already passed through mixers and bridges, becoming untraceable. Only $75.5 million — 5.3% of the total amount — was frozen.
The scale of North Korean operations turned out to be broader: researcher Vangelis Stykas found traces of hackers in the systems of 1,640 organizations across 57 countries. North Korea-linked groups control over 70% of the global volume of digital asset theft — this is a systemic threat requiring global coordination.
Miners in the red and the fight for energy
The largest mining companies reported losses: MARA Holdings lost $611.3 million, CleanSpark — $239.8 million. The reason is a 28% drop in the price of Bitcoin on average over the quarter. The industry is pivoting toward AI capacity: MARA invested up to $600 million in a Texas site, while Hut 8 leased an AI campus for $9.8 billion. Competition for electricity has intensified: in Texas, connections for data centers have been suspended, with applications totaling 474 GW in the queue.
My take
The BIP-110 split is not a catastrophe but an indicator of network maturity: the market rejected an unprepared proposal. However, Bybit's lawsuit against North Korea is a historic precedent that could change the rules of the game for the entire industry, forcing exchanges to invest more actively in security and international law. Miners, in turn, are undergoing a structural transformation — those who manage to adapt to the AI economy will win, while the rest risk being left behind.