Bitcoin storms to $79,500, Ethereum Foundation sounds the alarm, and the SEC rewrites the rules of the game: main events of the week
The outgoing week proved truly landmark for the cryptocurrency market. We witnessed a powerful bitcoin rally accompanied by record liquidations and significant capital inflows into ETFs. In parallel, the Ethereum Foundation warned of upcoming technical difficulties, while U.S. regulators introduced long-awaited frameworks for stablecoins and the market as a whole. Let's break down the key events in detail.
Bullish breakout: bitcoin hits new highs
The leading cryptocurrency put on quite a show. Starting the week with steady gains, by August 20 prices had added nearly 8% in a single day, approaching the $70,000 mark for the first time in 11 weeks. However, this was merely a prelude. The upward movement continued, and bitcoin easily surpassed the $79,000 level, reaching $79,500 on Binance — the last time such values were recorded was in mid-May.
This surge was backed by fundamental signals. Analysts noted a recovery in spot demand, pointing to a possible end of the bearish phase. The main driver, in my view, was a classic short squeeze: within the first 24 hours of the rally, short positions worth a record $2.7 billion were forcibly closed. The trigger for this move was a statement from the U.S. Treasury about plans to at least double the volume of Treasury buybacks, which added liquidity to markets.
Altcoins demonstrated 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. Institutional interest is also confirmed by the numbers: spot bitcoin ETFs recorded their largest weekly inflow since October 2025 ($1.92 billion), and Ethereum funds attracted a record $697 million.
Ethereum Foundation: warning of disruptions
Amid the widespread euphoria, the Ethereum Foundation team addressed developers with an important warning. The upcoming Glamsterdam upgrade, which changes the gas model, could take a significant portion of software offline. Wallets, indexers, and fee estimation tools will be hit first, especially those where a "hard-coded maximum gas limit" is set.
The issue lies in EIP-8037, which adds a separate state-gas dimension. This means a simple ETH transfer to an existing address will retain a cost of 21,000 units, but sending to a new address will incur an additional charge. Developers are strongly advised to test their systems on the public testnet to avoid unpleasant surprises after the upgrade is activated on the mainnet.
Regulatory shift: GENIUS Act and new SEC rules
This week we saw two landmark regulatory events at once. 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 requirements for issuers: one-to-one reserves, a limited list of permissible assets (dollars, deposits, short-term Treasury bonds), as well as mandatory regular disclosures and independent audits.
In turn, the SEC proposed the Regulation Crypto Assets draft. This initiative simplifies capital raising through tokens, offering two exemptions from registration requirements: up to $5 million over four years and up to $75 million over a 12-month period. Additionally, a "safe harbor" is provided for certain digital assets. SEC Chairman Paul Atkins emphasized that these rules will not replace congressional law but will create a more sustainable foundation for the market.
Solana speeds up and other news
Technical progress continues unabated. Solana activated the first stage of reducing slot time from 400 to 350 ms on the mainnet. This is the first change since the network's launch, and it aims to accelerate transaction confirmation. Plans include further reduction to 200 ms, with the option to halt the upgrade if the share of missed blocks increases.
The AI world also saw plenty of events: from investigations into Amazon's use of rare books to train neural networks to cases where an AI agent fired an employee. Cybersecurity news was also present — a vulnerability in macOS was discovered that allows hidden Monero miners to be installed.
My take: The past week demonstrated the market's maturity, capable of powerful moves even amid macroeconomic uncertainty. However, euphoria often gives way to correction, and the Ethereum Foundation's warning is an important reminder of the technical risks that always accompany innovation. The regulatory clarity we've begun to receive is a long-term positive, but in the short term, the market may remain volatile.