The past week was a test for the market: bitcoin pulled back to August lows, miners are massively converting mined coins into AI infrastructure, and neural networks have become a double-edged weapon in cyberwarfare. Plus — law enforcement raids in Moscow and new rounds of regulation. I break down the key events.
Bitcoin: the bounce fizzled out
July's optimism faded. As early as August 14, the leading cryptocurrency broke through the $63,000 level, returning to early-month values, although the market had closed the previous seven-day period at $65,200. In the first days of the week, signals were different: CryptoQuant analysts pointed to resistance in the $67,000 and $72,000 zones, calculated based on the realized price of short-term holders, while BlackRock spoke of a shift in investor sentiment and the final decoupling of BTC's dynamics from the stock market.
However, Glassnode experts warned: the market 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 bound, in their logic, opened a direct path to $58,500. In the end, bitcoin settled near $63,000, losing 3.3% over the week. Ether fell 2.1% to $1,880, and among the top cryptocurrencies, only the Hyperliquid token stayed in positive territory (+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 week prior. The fear and greed index froze at 34 points — in the "fear" zone. The total market capitalization declined from $2.22 trillion to $2.17 trillion.
Miners: betting on AI
The key trend of the week — miners are no longer selling off holdings to survive but are systematically restructuring their businesses around artificial intelligence. Former Bitfarms, now Keel Infrastructure, closed all its mining sites in the US, preparing them for AI data centers. Riot Platforms completed a full cycle in a few days: signed a 20-year, $9.1 billion contract with a leading AI lab (according to my data, this is Anthropic), sold 4,300 BTC, and raised up to $573 million to build an AI campus in Texas.
The scale is striking: MARA sold 23,093 BTC for $1.6 billion in the first half of the year, explaining this as funding for growth. Hyperscale Data sold 685 BTC for $43 million. The economics of mining are indeed pushing toward a pivot: fee revenues have fallen to a decade low, and the realized hashrate of public companies has dropped 21.2% over three quarters. This is not panic but a strategic choice — AI promises more stable margins than volatile mining.
AI in cyberattacks: a new reality
Neural networks have become a tool on both sides of the barricades. Bitcoin Red Team volunteers faced OpenAI restrictions, losing access to tools, and returned to Chinese models. Meanwhile, attackers are not limited by anything: South Korean analysts link the Kimsuky group to the use of local AI systems against crypto companies, and Taiwan exposed a hack of government institutions using AI agents. The founders of Boltz handed the project over to "bitcoin veterans" after a series of attacks allegedly carried out by neural networks.
Results of the July campaign against Coldcard: at least 1,778.84 BTC ($112.7 million) was stolen, with no new cases after August 6. Manufacturers also suffered reputational losses: data leaks at Trezor (13,689 users) and SafePal (about 40,000). I would also note Anthropic's findings: multi-agent AI systems demonstrate problems with trust, deception, and even collusion — this is an alarming signal for the entire security industry.
Russia: raids and compliance
Moscow law enforcement conducted mass raids at "Gorbushka" in a case involving crypto exchangers. In parallel, banks began requesting explanations from legal entities regarding USDT transactions, citing the Central Bank's register of exchange operators, which does not yet exist. As experts note, this is the logic of banks self-insuring, initiated by Rosfinmonitoring, rather than a direct instruction from the regulator. The situation will become clearer by September 1, when the law "On Digital Currency" takes effect, and the State Duma is already considering a bill on criminal liability for illegal cryptocurrency circulation.
Institutional players and regulation
Israel's largest bank, Bank Leumi, announced a partnership with Galaxy Digital for trading bitcoin, ether, and Solana. Norway's sovereign wealth fund disclosed a stake in BitMine worth $81.9 million. However, bitcoin treasuries risk losing their place in MSCI indices, and the likelihood of the Clarity Act passing in the US is estimated at only 10% — the Senate postponed the vote to September 15.
My assessment: the market is in a consolidation phase, and the miner sell-off is not a bearish signal but a structural shift. The flow of capital into AI infrastructure creates a new asset class but strengthens the correlation of the crypto industry with the technology sector. Investors should prepare for increased volatility in the coming weeks, especially amid regulatory uncertainty in the US and Russia.