Crypto news

The outgoing week was rich in landmark events: bitcoin once again tested August lows, mining giants are massively offloading mined coins to pivot toward artificial intelligence, and AI has firmly established itself in cybercriminals' arsenals. Plus, Moscow law enforcement struck against illegal crypto exchanges. We break down the key trends.

Bitcoin pulled back to August lows

July's momentum fizzled out. On August 14, the leading cryptocurrency dropped below the $63,000 mark, returning to early-month levels, though just a week earlier it was trading around $65,200. Notably, the first days of the period showed promise of growth—analysts set near-term targets in the $67,000–$72,000 zone, while BlackRock spoke of a shift in investor sentiment.

However, the market found itself squeezed: experts describe the state as "compressed," with the price caught between the median realized price of $63,000 and the short-term holder cost basis of $68,700. A break below the lower boundary, as I warned earlier, opens a direct path to $58,500. Over seven days, bitcoin lost 3.3%, settling at $63,000.

Ether also failed to hold, slipping 2.1% to $1,880. Among major altcoins, only the Hyperliquid token was in positive territory, gaining nearly 4.7%. Investors are voting with their feet: spot bitcoin ETFs saw their largest weekly outflow since early July at $398.7 million, while ether funds lost $2.2 million after a strong inflow the prior week. The fear and greed index stalled in "fear" territory at 34, and total market capitalization shrank from $2.22 trillion to $2.17 trillion.

Miners: selling bitcoin as an investment in the future

The trend of the week—selling mined coins has ceased to be a survival measure and turned into a growth strategy. Four major companies simultaneously announced directing proceeds toward building AI infrastructure.

The most radical step was taken by Keel Infrastructure (formerly Bitfarms), which fully decommissioned all its mining capacity in the U.S., repurposing sites for AI-driven 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, sold 4,300 BTC, and raised up to $573 million for an AI campus in Texas.

The scale of what's happening is striking. The largest U.S. miner, MARA, sold 23,093 BTC over six months for roughly $1.6 billion, citing funding for operations and supporting growth. Hyperscale Data also joined the list, selling 685 BTC for $43 million to fund its own data center. The mining economy is indeed contracting: miners' fee income has fallen to a decade low, and public companies have cut hashrate by 21.2% over three quarters. This is a fundamental shift that will shape market dynamics in the medium term.

AI in service of hackers and against them

Neural networks have finally become a working tool on both sides of the barricades. Tellingly, defenders face constraints: the Bitcoin Red Team lost access to OpenAI, reverting to Chinese models. Attackers, however, are unrestricted—South Korean analysts reported that the North Korea-linked Kimsuky group is actively using local AI systems to target crypto companies, while Taiwan revealed details of a government breach using AI agents.

The founders of the non-custodial service Boltz even handed the project over to "bitcoin veterans" after a series of attacks allegedly carried out with neural networks. Meanwhile, the July campaign against Coldcard hardware wallets has concluded: at least 1,778.84 BTC ($112.7 million) was stolen, with no new cases recorded after August 6. Manufacturers are also suffering reputational damage: Trezor reported a data leak affecting nearly 14,000 customers via a breach of a logistics partner, and SafePal disclosed compromised information for about 40,000 users. Anthropic's research deserves special attention, revealing issues with trust, lying, and collusion among AI agent groups—a troubling signal for the entire industry.

Russia: raids and banking compliance

On the evening of August 13, mass searches took place at Moscow's Gorbushka shopping center in a case involving crypto exchangers. Pressure on cash exchanges coincided with stricter banking compliance: major banks began requesting explanations from corporate clients regarding USDT transactions, demanding confirmation that the counterparty is included in the Central Bank's registry of digital currency exchange operators. The problem is that such a registry does not yet exist—it is planned for creation in the fall.

In my assessment, the initiative comes from Rosfinmonitoring, and banks are simply hedging by aligning with the logic of Federal Law 115-FZ. The uncertainty won't last long: the law "On Digital Currency and Digital Rights" takes effect on September 1, with a transition period running until July 1, 2027. In parallel, the State Duma is considering a bill on criminal and administrative liability for illegal crypto circulation, including confiscation of exchanged assets.

Institutions expand their presence

Against this backdrop, institutional adoption continues. Israel's largest bank announced a partnership with Galaxy Digital, offering clients the ability to trade bitcoin, Ethereum, and Solana. Norway's sovereign wealth fund disclosed a $81.9 million stake in BitMine. However, bitcoin treasuries risk losing their place in MSCI indices, and analysts estimate only a 10% probability of the Clarity Act passing in the U.S.—a week earlier, traders priced in 21%.

My view: the week showed that the market is in a consolidation phase ahead of a major decision. The pressure from miners selling bitcoin for AI is not panic but a structural overhaul of business models. Until this process concludes, a sustained bullish breakout is unlikely. The key support level is $63,000, and losing it would open the path to $58,500. But it is precisely in such periods that the foundations for the next major rally are laid.