Cryptocurrencies roared back to life from Aug 17 to Aug 21, with Bitcoin gaining nearly 20% and Ethereum surging about 25% as improving liquidity conditions and renewed optimism over US crypto regulation unleashed a powerful risk-on rally.
Bitcoin climbed from around US$64,500 on Aug 17 to US$77,300 by Aug 21, briefly touching above US$79,000 during the session on Aug 21. Ethereum outperformed, rising from roughly US$1,914 to US$2,391 over the same period.
The week began quietly, with Bitcoin advancing 2.6% on Aug 17 before barely moving the following day, while Ethereum gained 2% before ending Aug 18 almost flat. Momentum changed dramatically midweek.
On Aug 19, Bitcoin jumped more than 7%, while Ethereum soared around 17.5%, as investors reacted to the US Treasury’s decision to double purchases of longer-dated government bonds. The move eased pressure on bond yields and weakened the dollar, reviving the so-called “debasement trade” and boosting demand for alternative assets including crypto and gold.
The rally gathered pace after US President Donald Trump renewed his push for Congress to pass the Clarity Act, which seeks to establish clearer rules for digital assets. Bitcoin broke above US$70,000 for the first time since June, while Ethereum climbed above US$2,200 as regulatory optimism added fuel to the liquidity-driven rebound.
Buying accelerated into Aug 21, sending Bitcoin briefly above US$79,000 and putting the world’s largest cryptocurrency on course for its strongest weekly performance in more than two years. Renewed institutional inflows and improving sentiment across the broader crypto market further supported the advance.
The sharp rebound marked a dramatic change from the cautious tone at the start of the week. Ethereum’s stronger gain also pointed to investors moving further out on the risk curve, suggesting the recovery was broadening beyond Bitcoin.
Attention now turns to the Federal Reserve’s Jackson Hole gathering, US inflation signals and progress on crypto legislation, with those catalysts likely to determine whether the rally has further room to run.
