Happy Friday! Welcome to the 33th instalment of the Coinbyte Weekly Wrap.

The crypto market continued its strong upward momentum this week, with Bitcoin rising from US$78,335 on Aug. 21 to US$81,028, posting a weekly gain of approximately 3.44% and briefly moving above US$81,200. The rally was supported by a combination of improving liquidity expectations, a wave of short covering and sustained spot demand. On Aug. 19, the U.S. Treasury announced plans to at least double its long-term bond buybacks, which markets interpreted as supportive for liquidity and longer-term yields. Bitcoin’s break above the US$80,000 level further strengthened market momentum, while U.S. spot Bitcoin ETFs recorded around US$1.92 billion in weekly net inflows, showing that the rally was supported by sustained spot demand rather than short covering alone.

The stronger momentum also spread across the broader crypto market. Ether rose 7.74%, BNB gained 8.68%, Solana surged 23.86%, and Dogecoin advanced 9.73%, while TRX and Cardano gained 0.16% and 4.90% respectively. XRP was on track for its strongest weekly gain in 21 months, rising nearly 50%, while some smaller dog- and cat-themed meme coins gained as much as 130%. Trading activity also remained elevated, with BTC’s seven-day average daily volume reaching roughly US$44.8bn, USDT turnover at around US$96.1bn, and ETH and SOL recording approximately US$20.8bn and US$6.2bn respectively.

Institutional sentiment remained supportive, with BlackRock highlighting Bitcoin’s growing appeal as a potential hedge amid rising U.S. government debt, while Bernstein expects Bitcoin to reach US$150,000 by mid-2027. BlackRock and Bitwise also lowered the minimum size for in-kind Bitcoin ETF creations, further broadening access for larger Bitcoin holders. Meanwhile, Strive spent US$81.5m to purchase 1,110 BTC, bringing its total Bitcoin holdings to 21,356 BTC. Tom Lee said that “ETH’s rise is a matter of when, not if,” while Bitmine bought another 32,447 ETH, highlighting continued institutional accumulation.

Beyond market performance, blockchain adoption continued to expand into traditional finance. South Korean trading giant POSCO International brought trade receivables on-chain through Avalanche and plans to explore stablecoin-based cross-border settlements. Regulatory progress also continued, with the SEC reviving work on a U.S. crypto custody rule. Overall, this week’s market momentum was supported by a combination of macro liquidity expectations, leveraged short covering and sustained spot ETF demand, while broader institutional adoption, continued accumulation and infrastructure development continued to strengthen the market’s underlying momentum.

Performance

Newsflow

Market | Bitcoin Posts Record Weekly Gain

Bitcoin recorded its largest dollar-denominated weekly gain in history, rising 22.7% to US$81,150. U.S. spot Bitcoin ETFs then extended their inflow streak to seven consecutive trading days, bringing August net inflows to US$3.03 billion. Strive CEO Matt Cole predicted that Bitcoin is entering its "strongest" cycle in history. link

Bitcoin | BlackRock Sees Bitcoin as a Stronger Hedge

BlackRock said Bitcoin’s role as a hedge is becoming more compelling as U.S. government debt and deficits continue to rise. With U.S. debt exceeding US$40 trillion and annual interest costs approaching US$1 trillion, the asset manager sees growing potential demand for Bitcoin as an alternative store of value. link

More News

XRP | XRP is on track for its strongest weekly gain in 21 months, rising nearly 50% as broader crypto markets rallied. The move came as expectations for yield curve control increased following the U.S. Treasury’s expanded long-term debt buyback plans, adding to bullish sentiment across digital assets. link

ETF | BlackRock has lowered the minimum size for in-kind Bitcoin ETF creations from US$25 million to US$1 million, while Bitwise cut its threshold from US$100 million to US$3 million. The changes make it easier for larger Bitcoin holders to convert BTC directly into ETF shares without first selling the asset. link

Tokenization | South Korean trading giant POSCO International has brought trade receivables on-chain through Avalanche in its latest tokenization initiative. The company completed a tokenized trade receivables transaction and plans to explore stablecoin-based cross-border settlements and digital treasury management, expanding blockchain use into real-world trade finance. link

Market | Crypto’s recent rally has spread to smaller meme coins, with some dog- and cat-themed tokens gaining 50%–130% over the past week. Dogecoin and Shiba Inu also rose around 32% and 30%, respectively, as broader market sentiment improved. link

Regulation | The SEC is reviving work on a U.S. crypto custody rule, with an initial proposal submitted to the White House Office of Management and Budget for review. The rule could update custody requirements for investment advisers and funds while addressing how crypto assets are held and safeguarded. link

Market | CryptoQuant says Bitcoin has entered the initial phase of a new bull market, with its Bull Score rising from 30 to 80 in one week and eight of 10 indicators turning bullish. Bitcoin still needs to break above its 365-day moving average near US$83,000 for further confirmation. link

Bitcoin | Bernstein expects Bitcoin to reach US$150,000 by mid-2027, with a longer-term cycle peak of around US$300,000 by 2029. The firm maintained its long-term bullish outlook on Bitcoin while cutting its price target for Strategy from US$450 to US$350. link

Disclaimer: This newsletter and its contents are for informational purposes only and do not constitute financial, investment, or trading advice from BYTEATLAS PTY LTD, trading as CoinByte AU (“CoinByte”). CoinByte is not a licensed financial adviser. Readers should not make any investment decisions based on this newsletter without independent research and advice from a qualified professional. The information may be incomplete or inaccurate, and CoinByte makes no representations about its accuracy. Opinions expressed in quoted material are those of the original authors and do not necessarily reflect CoinByte’s views. Cryptocurrency is highly volatile and risky. Use of this information is at your own risk, and CoinByte is not liable for any losses arising from its use.