Bitcoin storms to $79,500, Ethereum Foundation sounds the alarm, and the SEC rewrites the rules of the game.
The past week proved truly landmark for the cryptocurrency market. The leading cryptocurrency demonstrated an impressive rally, updating local highs, while key industry players — from the Ethereum Foundation to U.S. regulators — made important statements capable of reshaping the industry's landscape.
Bullish Breakout: Bitcoin and Altcoins on the Rise
The most striking event was the rapid growth of Bitcoin. As early as Saturday, August 17, the asset showed momentum outpacing the stock market, and by August 20, quotes surged nearly 8% in a day, approaching the $70,000 mark for the first time in 11 weeks. This movement evolved into a full-fledged rally: after breaking through the psychological barrier, digital gold continued its assault and reached $79,500 on Binance — levels not seen since mid-May.
The upward move was accompanied by a real short squeeze. Within the first 24 hours of the rally, the volume of forcibly closed short positions hit a record $2.7 billion. Analysts link this surge to a statement by the U.S. Treasury about plans to double the volume of government bond buybacks, which added liquidity to markets.
Altcoins showed even more impressive dynamics. Ethereum, despite a correction from $2,500, rose 29.3%, XRP jumped 50%, while HYPE and Dogecoin gained 41.3% and 32%, respectively. Inflows into spot Bitcoin ETFs totaled $1.92 billion for the week — the highest since October 2025. The Fear and Greed Index soared from 34 to 71 points, signaling a shift in market participants' sentiment from extreme fear to clear greed.
Ethereum Foundation Warning: Readiness for Glamsterdam
Amid the overall positivity, the Ethereum Foundation team issued an important warning. The upcoming Glamsterdam upgrade, which will change the network's gas model, could disable a number of crypto wallets, indexers, and fee estimation tools. The issue is related to EIP-8037, which introduces a separate state-gas dimension for operations that create new state. Developers are strongly advised to test their systems on the Plataberget testnet, especially those using a "hardcoded maximum gas limit."
Regulatory Shift: New Rules for Stablecoins and the Crypto Market
U.S. regulators also contributed to shaping the industry's future. The U.S. Treasury presented a draft of rules for implementing the GENIUS Act, the first federal law on payment stablecoins. The document establishes strict reserve requirements, obliging issuers to back their tokens with highly liquid assets at a 1:1 ratio and conduct regular audits.
In parallel, the SEC proposed a new set of rules, Regulation Crypto Assets, which simplifies capital raising through tokens. The initiative provides two exemptions from registration requirements: up to $5 million over four years and up to $75 million annually. A "safe harbor" for certain investment contracts was also proposed, which could be an important step toward legitimizing many projects.
Technological Progress: Solana Speeds Up
A historic event occurred in the Solana ecosystem — the first phase of reducing slot time from 400 to 350 ms was activated on the mainnet. This is the first reduction in slot length since the network's launch, and the team plans further acceleration to 300, 250, and 200 ms, which should significantly increase transaction confirmation speed.
My take: The current rally looks fundamentally justified, backed by both macroeconomic factors and institutional interest, as evidenced by record ETF inflows. However, given the sharp rise and overheated sentiment, a corrective phase should not be ruled out. The regulatory initiatives from the SEC and the Treasury, in turn, are a long-awaited step toward market maturity, which in the long term will attract even more institutional capital.