Bitcoin storms $79,500, Ethereum Foundation raises the alarm: key events of the week
The outgoing week proved truly landmark for the cryptocurrency market. The leading cryptocurrency not only updated local highs but also demonstrated impressive momentum amid macroeconomic signals. In parallel, the Ethereum Foundation warned of upcoming technical challenges, while U.S. regulators introduced long-awaited frameworks for the industry. Let's break down the key events in order.
Bullish Breakout: Bitcoin and Altcoins on the Rise
Positive signals began arriving early in the week. Analysts noted signs of recovering spot demand, pointing to a potential reversal of the bearish trend. By August 20, Bitcoin made a leap, surging nearly 8% in a day and approaching the $70,000 mark for the first time in 11 weeks. However, the ascent did not stop there.
Digital gold continued its rally, breaking through the $79,000 level. On the Binance exchange, quotes reached $79,500 — the last time such values were recorded was in mid-May. This move was accompanied by record short liquidations: within the first 24 hours, the volume of forcibly closed trades approached $3 billion, of which $2.7 billion came from shorts.
As a growth driver, I see a classic short squeeze triggered by the U.S. Treasury's statement about its intention to double the volume of Treasury buyback operations. This injected liquidity into the market and forced bears to close positions, further fueling the upward momentum. Over the week, Bitcoin gained more than 22.5%, while most altcoins showed even more impressive dynamics: Ethereum rose 29.3%, XRP — 50%, HYPE and Dogecoin — 41.3% and 32%, respectively. The Fear and Greed Index jumped from 34 to 71 points before correcting to 66.
Ethereum Foundation: Warning of Disruptions
Amid the overall positivity, the Ethereum Foundation (EF) team addressed developers with an important warning. The upcoming Glamsterdam upgrade will change the gas model, which could cause disruptions in some wallets, indexers, and fee estimation tools.
The issue is related to EIP-8037, which adds a separate state-gas dimension for operations that create new state. A simple ETH transfer to an existing address will retain a cost of 21,000 units, but sending coins to a new address will incur an additional charge. Developers are strongly advised to test their systems on the public Plataberget testnet, especially tools that use a "hard-coded maximum gas limit."
Regulatory Shifts: GENIUS Act and New SEC Rules
The U.S. Treasury presented a draft of rules for implementing the GENIUS Act — the first federal law on payment stablecoins. The document defines strict requirements for issuers: one-to-one reserves, a limited list of permissible assets (dollars, bank deposits, short-term Treasury bonds), and regular disclosure.
The SEC, in turn, proposed new rules for the crypto market. The Regulation Crypto Assets draft simplifies capital raising through tokens, providing exemptions for offerings up to $5 million and up to $75 million. A "safe harbor" for certain digital assets is also proposed. This is an important step toward creating clear frameworks, although SEC Chair Paul Atkins rightly notes that a full legislative foundation from Congress would provide the market with more sustainable rules.
Solana Speeds Up
The Solana team activated the first stage of reducing slot time from 400 to 350 ms on the mainnet. This is part of implementing proposal SIMD-0525, with plans to further reduce it to 300, 250, and 200 ms. Shortening the slot should accelerate transaction confirmation, and the approved schedule allows halting the upgrade if the share of missed blocks increases.
My comment: The week showed that the market remains extremely sensitive to macroeconomic stimuli, and short squeezes can create powerful but short-term impulses. However, the EF's warning about technical risks is a reminder that infrastructure upgrades can carry hidden threats, and investors should closely monitor protocol news, not just price charts.