Bitcoin Holds $78K After Best Week Since 2021

Bitcoin ($BTC) steadied near $78,000 following its second-best weekly performance since early 2021, after surging approximately 26% in four days from $63,000 to $79,460. US spot Bitcoin ETFs attracted $1.92 billion last week, marking their strongest weekly inflow since October 2025, according to Cointelegraph. Technical analysis suggests the current consolidation around $77,000 may form a bull flag pattern, with potential upside targets between $84,000 and $86,000 if the pattern confirms. CoinDesk noted that Ethereum ($ETH) is outperforming Bitcoin, with a technical "golden cross" signal suggesting continued relative strength.

Ethereum lending application Term Finance lost an estimated $8.5 million after an attacker acquired voting power and exploited vault governance mechanisms, according to Cointelegraph. The protocol permanently closed its Meta Vaults following the attack, which removed nearly all Ethereum deposits from the affected vaults. The exploit highlights ongoing governance vulnerabilities in DeFi protocols, where token-based voting systems can be manipulated if sufficient voting power is acquired through market purchases or flash loans.

Germany expanded its lead in EU MiCA (Markets in Crypto-Assets) authorizations to 79 crypto asset service providers, ahead of France and the Netherlands, after the latest register update added six banks. Pakistan launched a crypto licensing portal and set a September 5 deadline for existing virtual asset providers to apply for a No Objection Certificate or cease operations under the country's new regulatory framework. A pilot program testing quantum-resistant crypto transfers commenced with participating banks using post-quantum wallets and onchain transfers, while regulators from Abu Dhabi, Bhutan, and Malta observe the initiative. Ray Dalio stated in remarks covered by CoinDesk that investors should own "a bit of Bitcoin" as US debt risks rise.

Stablecoin neobank Fasset reached a $1 billion valuation with backing from SBI as it expands its payments infrastructure, according to CoinDesk. The Federal Reserve conducted an experiment examining how Bitcoin rallies attract new crypto buyers, though details of the study's methodology and findings were not disclosed in available reports. Gold rallied above $4,600 per ounce as fiscal credibility concerns persist, according to ING analysis cited in market coverage, providing context for Bitcoin's appeal as an alternative store of value.

Market participants will focus on the Jackson Hole Symposium this week, where Fed Chair Warsh's debut appearance comes into focus amid questions about monetary policy direction. US PCE price data will be released, providing key inflation indicators that could influence Federal Reserve policy expectations and risk asset sentiment. Crypto miner IREN is scheduled to report earnings, offering insight into Bitcoin mining profitability at current network difficulty and energy cost levels. The interplay between Treasury Secretary Bessent's $4 billion bond buyback program and crypto market flows will continue to draw attention after the buyback coincided with Bitcoin's surge rather than achieving its intended goal of lower yields.