Crypto news

The past week proved to be a turning point for the digital assets market. Bitcoin lost all of its July momentum, returning to early August lows, while mining giants continued their radical business transformation, channeling revenue from coin sales into artificial intelligence infrastructure. In parallel, AI became a full-fledged weapon in the hands of cybercriminals, and Russian banks tightened compliance for crypto clients.

Market: Pullback to Support

On August 14, the first cryptocurrency broke through the $63,000 level, erasing the gains of the previous seven-day period, which had closed at $65,200. Glassnode analysts describe the current situation as a "compressed" market: the price is squeezed between the median realized price of $63,000 and the cost basis of short-term holders at $68,700. A break below the lower boundary, in their estimation, opens a direct path to $58,500.

Over the week, Bitcoin lost 3.3%, while Ethereum fell 2.1% to $1,880. The only notable exception was Hyperliquid's HYPE token, which gained nearly 4.7%. The Fear and Greed Index stalled in the "fear" zone at 34, and market capitalization shrank from $2.22 trillion to $2.17 trillion. Spot Bitcoin ETFs recorded their largest weekly outflow since early July, totaling $398.7 million.

Miners: Betting on AI

The sell-off of bitcoins by miners has ceased to be an anti-crisis measure—it is a deliberate strategy of transitioning to AI infrastructure. Former Bitfarms, now Keel Infrastructure, decommissioned all of its mining sites in the US, preparing them for data centers. Riot Platforms signed a 20-year contract worth $9.1 billion with a major AI lab in a matter of days, sold 4,300 BTC, and raised up to $573 million for the construction of an AI campus in Texas.

The scale of the process is impressive: MARA sold 23,093 BTC in the first half of the year for approximately $1.6 billion. The economics of mining are indeed deteriorating—miners' revenue from fees has fallen to a ten-year low, and public companies have reduced their hashrate by 21.2% over three quarters. This is a fundamental shift that will exert pressure on the market in the medium term.

Cybersecurity: AI in the Service of Evil

It is telling that restrictions on the use of AI tools for "white hat" hackers do not hinder malicious actors. South Korean analysts recorded the use of local AI systems by the Kimsuky group for attacks on crypto companies, while Taiwan revealed details of a hack on government institutions using AI agents. The Boltz project was handed over to a new team after a series of similar attacks.

Incidents with hardware wallets continue: at least 1,778.84 BTC ($112.7 million) has been stolen from vulnerable Coldcard devices, and data leaks have affected nearly 14,000 Trezor users and about 40,000 SafePal users.

Regulation: Pressure Mounts

Moscow law enforcement conducted searches at "Gorbushka" in connection with a case involving crypto exchangers, and major Russian banks have begun requiring legal entities to confirm the inclusion of counterparties in a non-existent Central Bank registry. This is clearly a logic of banks self-insuring, but the uncertainty will not last long—the "On Digital Currency" law takes effect on September 1.

In the US, the situation is different: the probability of passing the Clarity Act is estimated at only 10%, which disappoints the market. Meanwhile, institutional players continue to enter: Israel's largest bank is launching cryptocurrency trading, and Norway's sovereign wealth fund has disclosed a stake in BitMine worth $81.9 million.

My comment: The current week demonstrates a classic picture of capital redistribution. Miners selling coins to finance the AI transition are creating excess supply that the market is not yet able to absorb. In the short term, this means increased volatility, but strategically, miners' diversification reduces the risks of industry centralization. Investors should closely watch the $58,500 level—a break below it could trigger a cascade of liquidations.