Bitcoin under pressure: miners flee to AI, and hackers master neural networks — weekly recap
The outgoing week was eventful: the leading cryptocurrency pulled back to August lows, public miners are massively winding down mining in favor of AI infrastructure, and neural networks are becoming a key tool for both cyberattacks and defense. In addition, Moscow law enforcement made their presence felt at "Gorbushka," while regulatory pressure on the crypto market in Russia continues to intensify.
Bitcoin loses ground, market waits in suspense
The July momentum has fizzled out. On August 14, the Bitcoin price fell below $63,000, returning to levels seen at the start of the month, although a week earlier the asset had closed at $65,200. At the beginning of the week, analysts were making bullish forecasts: CryptoQuant contributor ShayanMarkets pointed to resistance in the $67,000 and $72,000 zones, while BlackRock spoke of a shift in investor sentiment.
However, Glassnode experts warned of a "compressed" market: the price was stuck 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, they said, opens the path to $58,500. By the end of the week, Bitcoin had settled near $63,000, losing 3.3% over seven days. Ether fell 2.1% to $1,880, and among the top cryptocurrencies, only Hyperliquid (HYPE) token was in the green, gaining nearly 4.7%.
Institutional demand also weakened: spot Bitcoin ETFs recorded their largest weekly outflow since early July at $398.7 million. Ether funds lost $2.2 million after an inflow of $244.9 million the previous week. The Fear and Greed Index remained stuck in the "fear" zone at 34, and the total market capitalization declined from $2.22 trillion to $2.17 trillion.
Miners swap Bitcoin for AI
Sales of mined coins are no longer a crisis measure—this is a strategic pivot. Over the week, four companies redirected revenue toward building AI infrastructure. Former Bitfarms, now Keel Infrastructure, decommissioned all its mining sites in the U.S., preparing them for data centers. Riot Platforms signed a 20-year contract worth $9.1 billion, sold 4,300 BTC, and raised up to $573 million for an AI campus in Texas. MARA sold 23,093 BTC for $1.6 billion over six months, while Hyperscale Data sold 685 BTC for $43 million.
The economics of mining explain this pivot: miners' fee revenues have fallen to a decade low, and the hashrate of public companies has dropped by 21.2% over three quarters. This is not a temporary correction but a structural shift—the industry is reorienting toward more profitable segments.
AI serving both hackers and defenders
Neural networks have become a battlefield. Volunteers from Bitcoin Red Team faced restricted access to OpenAI and returned to Chinese models. Meanwhile, the North Korean group Kimsuky is actively using local AI systems to attack crypto companies, and Taiwan has revealed details of a breach of government institutions using AI agents. Boltz developers handed the project over to "Bitcoin veterans" after a series of attacks allegedly carried out with the help of neural networks.
At the same time, the July campaign against hardware wallets has concluded: at least 1,777.84 BTC ($112.7 million) was stolen from vulnerable Coldcard devices, with no new incidents recorded after August 6. However, reputational losses continue: Trezor and SafePal reported data leaks affecting 13,689 and 40,000 users, respectively.
Russia: raids and new compliance
On the evening of August 13, mass searches took place at Moscow's "Gorbushka" shopping center in a case involving crypto exchangers. Simultaneously, major banks began requesting explanations from legal entities regarding USDT transactions, demanding confirmation that the counterparty is included in the Central Bank's register of exchange operators, which does not yet exist. As crypto expert Viktor Pershikov noted, this is the logic of banks self-insuring, with the initiative coming from Rosfinmonitoring.
The situation will become clearer after September 1, when the law "On Digital Currency and Digital Rights" takes effect. In parallel, the State Duma is considering a bill on criminal liability for illegal crypto circulation with confiscation.
Institutions and regulation
Israel's largest bank announced a partnership with Galaxy Digital for trading Bitcoin, Ethereum, and Solana, while Norway's sovereign wealth fund disclosed a stake in BitMine worth $81.9 million. However, Bitcoin treasuries Strategy and Metaplanet risk being excluded from MSCI indices. Galaxy Digital analysts estimate the chances of the Clarity Act passing in the U.S. at just 10% after the procedural vote in the Senate was postponed to September 15.
My comment: The market is in a phase of reassessment. The mass exodus of miners into AI is not panic but a rational response to declining profitability. However, this creates additional pressure on Bitcoin in the short term. The key level of $58,500, highlighted by Glassnode, will be a decisive test for the bulls. If it holds, the market will have grounds for consolidation, but a break could trigger a new wave of sell-offs.