The outgoing week was eventful: the leading cryptocurrency pulled back to August lows, miners are massively converting mined coins into AI infrastructure, and neural networks are becoming a key tool for both defense and cyberattacks. Additionally, law enforcement in Moscow conducted large-scale searches at the legendary "Gorbushka" market.
Bitcoin tests support amid ETF outflows
July's momentum has faded. On August 14, Bitcoin's price broke through the $63,000 level, returning to early-month values, although a week earlier the asset closed at $65,200. Analysts note market "compression": the price is stuck between the median realized value of $63,000 and the cost basis of short-term holders at $68,700. A break below the lower boundary, in my estimation, opens a direct corridor to $58,500.
Over seven days, the asset fell by 3.3%, while Ethereum dropped 2.1% to $1,880. The only exception was the Hyperliquid (HYPE) token, which gained nearly 4.7%. Spot Bitcoin ETFs recorded their largest weekly outflow since early July at $398.7 million, while Ether funds lost $2.2 million after a strong inflow the previous week. The Fear and Greed Index stalled in the "fear" zone at 34 points, and the total market capitalization shrank from $2.22 trillion to $2.17 trillion.
Miners swap Bitcoin for artificial intelligence
The sell-off of mined coins is no longer a crisis measure—it is a deliberate transformation strategy. Former Bitfarms, now Keel Infrastructure, has fully decommissioned its U.S. mining sites, preparing them for AI-focused data centers. Riot Platforms went through the entire cycle in a few days: signed a 20-year, $9.1 billion contract with a leading AI lab (in my view, this is Anthropic), sold 4,300 BTC, and raised up to $573 million for an AI campus in Texas.
The scale is impressive: MARA sold 23,093 BTC in the first half of the year for roughly $1.6 billion, 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 realized hashrate of public companies dropped by 21.2% over three quarters. This is a fundamental shift that will shape the supply-demand balance in the market over the coming months.
AI in the service of hackers and defenders
Neural networks have become a full-fledged tool of cyberwarfare. South Korean analysts found that the North Korea-linked group Kimsuky uses local AI systems to attack crypto companies. Taiwanese government agencies also revealed details of a hack using AI agents. The situation with the Boltz service is telling: its founders handed the project to a group of "Bitcoin veterans" after a series of attacks allegedly carried out using neural networks.
At the same time, defenders face limitations: AnchorWatch's CEO said his team lost access to OpenAI under a cybersecurity program and was forced to return to Chinese models. Separately, I note that the July campaign against Coldcard hardware wallets has ended: attackers stole at least 1,778.84 BTC ($112.7 million), but no new cases have been recorded since August 6.
Russia: searches and regulatory uncertainty
On the evening of August 13, mass searches took place at Moscow's "Gorbushka" shopping center in a case involving crypto exchangers. In parallel, major Russian banks began requiring legal entities to confirm that counterparties are included in the Central Bank's register of digital currency exchange operators—which, in fact, does not yet exist. The regulator plans to create it only in the fall. In my assessment, this is the logic of banks' self-protection rather than a direct regulatory instruction. The situation will become clearer after September 1, when the law "On Digital Currency and Digital Rights" takes effect.
Institutions and legislation
Israel's largest bank announced a partnership with Galaxy Digital for trading Bitcoin, Ethereum, and Solana, while Norway's sovereign wealth fund disclosed a $81.9 million stake in BitMine. However, Bitcoin treasuries risk losing their place in MSCI indices, and the probability of the Clarity Act passing, according to Galaxy Digital's estimates, is only 10%.
My verdict: the market is in a consolidation phase ahead of a decisive move. ETF outflows and miner pressure create short-term negativity, but institutional adoption continues to grow. The key level is $63,000. If it holds, we will see a rebound to $68,000-70,000. If not, get ready for a test of $58,500.