Bitcoin under pressure, miners flee to AI, and neural networks attack: weekly recap
The outgoing week was eventful: the leading cryptocurrency pulled back to August lows, miners are massively converting mined coins into AI infrastructure, and artificial intelligence has become a full-fledged tool for both hackers and defenders. To top it all off, Moscow law enforcement conducted large-scale searches at the legendary "Gorbushka." I break down the key events.
Bitcoin loses ground, market slips into "fear"
July's optimism has faded. On August 14, bitcoin broke through the $63,000 level, returning to early-month values, although the previous week closed at $65,200. The start of the seven-day period, however, offered hope for continued growth: CryptoQuant analysts 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, 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, by their logic, opened the path to $58,500. The forecast came true: by the end of the week, the asset settled near the $63,000 mark, losing 3.3% over seven days. Ethereum fell 2.1% to $1,880, and among the top cryptocurrencies, only HYPE from Hyperliquid was in the green (+4.7%).
Institutional demand also weakened. Spot bitcoin ETFs recorded their largest weekly outflow since early July at $398.7 million. Ethereum funds lost $2.2 million after a substantial inflow the week prior. The Fear and Greed Index stalled at 34 points in the "fear" zone, and the total market capitalization shrank from $2.22 trillion to $2.17 trillion.
Miners: a new survival strategy
Bitcoin sales by miners are no longer a crisis measure but have become a deliberate strategy. This week, four companies directed the proceeds toward building AI infrastructure. Former Bitfarms, now Keel Infrastructure, fully decommissioned its mining capacity in the U.S., preparing sites for data centers. Riot Platforms signed a 20-year contract with Anthropic worth $9.1 billion within days, 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 in the first half of the year, while Hyperscale Data sold 685 BTC for $43 million.
The mining economy has indeed become unbearable: fee revenues fell to a ten-year low, and the realized hashrate of public companies dropped 21.2% over three quarters. This is a fundamental shift that will shape market dynamics in the medium term.
AI on the battlefield
Neural networks have become full-fledged weapons in cyber warfare. North Korean hackers from Kimsuky use local AI systems to attack crypto companies, and Taiwan revealed details of a breach of government institutions using AI agents. The founders of the Boltz service handed the project over to "bitcoin veterans" after a series of attacks allegedly carried out with AI. Meanwhile, defenders face limitations: AnchorWatch's CEO described how he lost access to OpenAI tools under a cybersecurity program, forcing the team to revert to Chinese models.
Separately, I note that the July campaign against Coldcard hardware wallets has concluded: according to Galaxy Research estimates, hackers stole at least 1,777.84 BTC ($112.7 million), with no new incidents recorded after August 6. At the same time, Trezor and SafePal reported data breaches—affecting 13,689 and 40,000 users, respectively.
Russia: pressure on exchangers and bank compliance
On the evening of August 13, law enforcement conducted mass searches at the "Gorbushka" shopping center in a case involving crypto exchangers. In parallel, major Russian banks began requesting explanations from legal entities regarding USDT transactions, citing a non-existent registry of digital currency exchange operators from the Central Bank. As crypto expert Viktor Pershikov notes, this is the logic of banks self-insuring rather than a direct instruction from the regulator. However, the uncertainty will soon be resolved: the law "On Digital Currency and Digital Rights" takes effect on September 1, and the State Duma is considering a bill on criminal liability for illegal cryptocurrency circulation.
Institutions and legislation
Israel's largest bank, Bank Leumi, announced a partnership with Galaxy Digital for trading bitcoin, Ethereum, and Solana. Norway's sovereign wealth fund disclosed a stake in BitMine worth $81.9 million. At the same time, Strategy and Metaplanet risk losing their place in MSCI indices, and Galaxy Digital estimates only a 10% chance of the Clarity Act being passed this year.
My analysis: The week showed that the market is in a consolidation phase with a clear bearish tilt. Outflows from ETFs and declining miner revenues are alarming signals, but miners' shift to AI could become a new driver for the industry, reducing sell pressure on the market in the long term. The key level for bitcoin right now is $63,000. Losing it would open the path to $58,500, but that is precisely where I see a strong support zone capable of reversing the trend.