📊 WEEKLY SUMMARY: GEOPOLITICS, ECONOMY, AND THE RALLY THAT CAUGHT THE CRYPTO MARKET BY SURPRISE
A turning week for anyone who had been discouraged by the market. After months of correction, BTC showed strength again — and not alone.
🔥 What happened to Bitcoin
BTC started the week trading near US$63,000 amid widespread pessimism (Fear & Greed Index at 40, defensive retail sentiment). The turning point came on Wednesday, with the SEC announcing a new regulation proposal for crypto offerings, pulling the price back toward the US$79,000 range.
But the real trigger was the U.S. Treasury: Secretary Scott Bessent announced he will double the buyback volume of long-term securities — a way to inject liquidity into the system without going through the Fed directly. On top of that, Trump publicly pressured Congress to pass the CLARITY Act, a bill that ultimately defines whether crypto is a security or a commodity in the U.S., a question currently stuck in the Senate.
The result: BTC jumped nearly 20% in five days, breaking through $75,000 on Friday — the best weekly performance since March 2024. Nearly $2 billion in short positions were liquidated in the process, further accelerating the surge (short squeeze).
📈 The cascade effect on altcoins
When BTC rips like this, the whole market follows — and that’s exactly what we saw. ETH rose more than 17% just on Thursday, getting back above $2,400. XRP surged nearly 20% in 24 hours. SOL and virtually the entire market moved together, with Bitcoin ETFs recording the biggest inflows in months (more than $500 million just on Thursday).
The reason behind this “cascade effect”: when the market’s dominant asset (BTC) rises strongly with real volume, capital that was on the sidelines starts turning back toward the sector as a whole — including toward higher-risk assets.
🌐 The geopolitical and economic backdrop
It’s worth remembering that this recovery doesn’t happen in a vacuum. The market still carries two unresolved tensions: an inflation shock tied to trade tariffs and an active war between the U.S. and Iran, affecting one of the world’s main energy routes. Analysts say these tensions remain on the radar, even with the recent rally.
📅 What to expect next week
The big event on the radar is the Jackson Hole Symposium, from August 27 to 29 — the annual retreat of the world’s top central bankers. It will be the new Fed chair Kevin Warsh’s first major public speech since taking office in May. He has already signaled that he won’t follow the usual pattern of telegraphing decisions in advance, which increases the unpredictability of the remarks.
Today’s market pricing implies about 1 in 3 chances of a rate hike in September — a figure that can change quickly depending on Warsh’s tone. A more dovish speech tends to support the rally; a tougher tone could stall the move before the September decision.
A calm weekend for all of you — and may next week bring clarity to the market, whatever the direction. 🚀
