Crypto news

The outgoing week proved to be a turning point for the digital asset market. Bitcoin not only lost all of its July momentum but also faced strong pressure from miners, who are massively pivoting to AI infrastructure. In parallel, neural networks have firmly established themselves in the arsenal of cybercriminals, while Russian regulators began targeted crackdowns on crypto exchange businesses.

Market returns to August lows

On August 14, the first cryptocurrency broke below the $63,000 mark, completely erasing the rebound of the previous week, when the asset closed at $65,200. Notably, at the start of the week, CryptoQuant analysts pointed to resistance levels of $67,000 and $72,000, calculated based on the realized price of short-term holders, while BlackRock spoke of a shift in investor sentiment.

However, Glassnode data painted a less optimistic picture: the market is in a "compressed" state 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 of this corridor opens a direct path to $58,500. Over the seven days, Bitcoin lost 3.3%, settling near $63,000. Ether fell 2.1% to $1,880, and the only notable exception among major altcoins was the Hyperliquid token, which gained 4.7%.

Institutional demand also weakened: spot Bitcoin ETFs recorded their largest weekly outflow since early July at $398.7 million, while Ether funds lost $2.2 million after an inflow of $244.9 million the previous week. The Fear and Greed Index stalled at 34, remaining in the fear zone, and the total market capitalization shrank from $2.22 trillion to $2.17 trillion.

Miners vote with their wallets: AI matters more than Bitcoin

The main structural shift of the week is the mass sell-off of mined coins to fund AI projects. This is not about covering operating expenses but about a strategic business pivot.

Keel Infrastructure (formerly Bitfarms) has completely decommissioned all mining capacity in the US, preparing sites for data centers for high-performance computing. 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 the construction of 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 economics of mining explain this pivot: on August 12, miner revenue from fees fell to a ten-year low, and the realized hash rate of public companies dropped by 21.2% over three quarters. This is not temporary market conditions but a systemic shift—mining as a business is losing appeal amid the boom in high-performance computing.

AI in the service of cybercrime

It is telling that neural networks have become a working tool on both sides of the barricades. Bitcoin Red Team faced access restrictions to OpenAI and was forced to return to Chinese models. Meanwhile, attackers experience no such difficulties: South Korean analysts recorded the use of local AI systems by the Kimsuky group for attacks on crypto companies, and Taiwan revealed details of a hack on government institutions using AI agents.

Of particular concern is the incident with the non-custodial service Boltz, whose founders handed the project over to "Bitcoin veterans" after a series of attacks. At the same time, the July campaign against Coldcard hardware wallets has concluded: according to Galaxy Research estimates, attackers stole at least 1,778.84 BTC ($112.7 million), and no new cases have been recorded since August 6.

Russia: raids and banking compliance

Moscow 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 corporate clients regarding USDT transactions, citing a non-existent registry of digital currency exchange operators from the Central Bank. This is the classic logic of self-insurance by financial institutions, backed by Federal Law 115-FZ, but it creates serious uncertainty for legitimate businesses. The situation will become clearer after the law "On Digital Currency and Digital Rights" takes effect on September 1, but in parallel, the State Duma is considering a bill on criminal liability for illegal cryptocurrency circulation with confiscation—a signal of further tightening.

Institutions and the legislative deadlock

Amid the market correction, Israel's largest bank announced a partnership with Galaxy Digital to launch trading in Bitcoin, Ether, and Solana, while Norway's sovereign wealth fund disclosed a stake in BitMine worth $81.9 million. However, the likelihood of the Clarity Act passing this year is estimated at just 10%—the Senate postponed the vote to September 15, and the market is pricing in minimal chances of progress.

My comment: The current correction is not just a technical pullback but a reflection of a fundamental restructuring of the industry. Miners, historically the backbone of Bitcoin, are now voting with dollars for AI, and this creates additional pressure on the price. The market will need time to digest this structural shift, and the key level for the coming weeks remains $58,500—a break below this mark could trigger a cascade of liquidations.