U.S. debt policy stimulates risk appetite, Bitcoin rises 23%: Market summary

Bitcoin rebounded strongly, gaining more than 23% this week.

Bitcoin rebounded strongly this week. After briefly breaking through US$79,000 on Friday, as of writing, its price has risen by more than 23% from the beginning of the week, trading around US$77,559. The move has revived discussions about whether the broader bear market has finally lost momentum-especially after technical indicators signaled a long-term trend shift.

Charting platform Barchart pointed out on Thursday that Bitcoin exceeded its 200-day moving average for the first time since November 2025. Market participants often view this moving average as a signal of improving momentum. If this breakthrough continues, it could affect position placement across the market, as many traders view the 200-day line as a representative of a dominant trend.

Core Points

Bitcoin has risen more than 23% this week and is currently around $77,559 after briefly touching above $79,000. Barchart said that Bitcoin is back on its 200-day moving average for the first time since November 2025. Mainstream currencies followed suit: Ethereum rose by about 31% over the same period, Solana rose by about 28%, and XRP rose by about 53%. Bitcoin and Ethereum ETFs combined recorded net inflows of more than $2.61 billion last week. Regulatory and macro-level news in the United States-progress on the CLARITY Act, an SEC proposal and ongoing debt concerns-formed the backdrop for the rally.

Bitcoin regains the 200th line, sparking a new round of bullish debate

This rally is not limited to Bitcoin. Ethereum is up about 31% this week, Solana is about 28% and XRP is about 53%, indicating widespread risk aversion behavior rather than a rebound in a single asset. The general rise in mainstream currencies is significant because it shows that demand is emerging in various liquidity areas, not just one sector of the market.

Barchart observed that Bitcoin broke its 200-day moving average, which became the core of the "cycle-flipping" narrative. Market history tends to reward traders who view such long-term indicators as confirmation of a trend shift, but the key question is whether this breakthrough can be sustained after the initial surge. Standing on the 200-day line may be necessary to regain momentum, but it is not always possible to prevent a correction-especially after a week of sharp gains.

ETF fund flows add another layer of ground to bullish views. The article reported that Bitcoin and Ethereum ETFs together attracted more than $2.61 billion in capital inflows last week. In addition, the article also mentioned that Michael Saylor's Bitcoin position held through Strategy has exceeded the break-even point of $75,385. Although these details only address the cost base and strategies of specific investors, they may still affect broader market sentiment because they highlight how institutional accumulation interacts with market price discovery.

Macro concerns intensify, cryptocurrency-related stocks join the rally

The price increase appears to have spread to stocks linked to the cryptocurrency ecosystem. The article pointed out that the share prices of a number of publicly listed cryptocurrency-related companies, including Canaan, Metaplanet, Coinbase and Robinhood, also recorded double-digit gains this week.

At the same time, macro themes are also seen as part of the catalyst. The article emphasized that the size of U.S. Treasury bonds has exceeded US$40 trillion, and pointed out that there is "no plan" to balance the budget or repay debt in the short term. The article also quoted Kobeissi Letter, arguing that precious metals and cryptocurrencies benefit from the combined effects of inflationary pressures, deficit spending and national debt policies.

Key points of government bond policy mentioned in the article include a commitment to at least double the size of certain debt repurchase operations to US$4 billion. From an investor's perspective, this is important because bond issuance and repurchase can affect liquidity conditions and demand dynamics in the broader capital markets. When traders expect changes in these conditions, cryptocurrencies are usually traded as a high-beta asset, responding quickly to changes in macro expectations.

The article also mentioned Ray Dalio, saying he suggested allocating about 15% of the portfolio to gold and "a small amount of bitcoin" to deal with the possible consequences of U.S. debt problems. Although individuals 'allocation views vary, their core message is the same: some large traditional investors seem to be laying out for the continued uncertainty surrounding sovereign debt.

U.S. policy remains a key variable: CLARITY, SEC proposal and CFTC follow-up

Regulation remains another major narrative line accompanying the market rebound. The article stated that President Donald Trump once again called for passage of the CLARITY Act after meeting with cryptocurrency executives. The article further pointed out that the market structure bill was passed in the House of Representatives in July 2025 and will be voted on a procedural basis on September 15, requiring 60 votes in favor.

Although the article stated that the CLARITY bill had bipartisan support, it also pointed out obstacles that the Senate may face. The article quoted comments from Sen. Ruben Gallego, suggesting that Democrats may need additional concessions-particularly on the ethics clause-to move the bill forward. This dynamic is significant for market participants: Uncertainty surrounding the final regulatory shape may affect market expectations for compliant issuance, exchange activity and the broader chain market structure.

The regulatory landscape has been further complicated by the SEC. According to the article, the SEC has proposed new rules that could affect whether lawmakers feel additional urgency to pass the CLARITY bill-or whether the industry will try to go the other way through token issuance. The proposal includes exemption clauses allowing up to $5 million in tokens over four years and up to $75 million in tokens over 12 months, subject to stricter reporting and structure requirements; and mentions a safe harbor clause designed to exempt cryptocurrencies from being considered an "investment contract." The article quoted SEC Commissioner Hester M. Peirce commented that she believes cryptocurrencies are struggling under what she calls the SEC's application of "inappropriate rules" and sees the proposal as a step towards clearer, enforceable guidelines.

In parallel with the SEC, the article quoted CFTC Chairman Michael Selig as saying that if the CLARITY bill fails to pass the Senate, the agency will formulate its own cryptocurrency rules. He also instructed his staff to explore how registered and unregistered entities can provide "leveraged or margin based trading in cryptoassets" and study developer protection measures. This is important because even if the legislative outcome of the CLARITY Act is delayed, market participants may still see regulatory clarity through agency action-although its contours may differ from a comprehensive law.

Beyond the Headlines: Leaders, Outstanding Forecasts and Industry Risks

In the summary of this week's performance, market currency prices moved strongly. The article stated that Bitcoin rose approximately 23.5% to US$77,559, Ethereum rose approximately 31.1% to US$2,456, and XRP rose approximately 53.3% to US$1.52. According to CoinMarketCap data, the total market value reached US$2.63 trillion.

Among the top 100 cryptocurrencies, the article highlighted the currencies that led the week, including Pump.fun (PUMP) up 98.9%, Ethena (ENA) up 98.3%, and Stacks (STX) up 94.8%. The article also listed currencies that lagged behind this week, such as JUST (JST) down 4.3%, MemeCore (M) down 2.9%, and Sun (SUN) down 1%.

In terms of forecasts, the article quoted Standard Chartered Bank via a linked report, where Geoff Kendrick, global head of digital asset research, believes that the widely discussed $100,000 year-end target may be "too low." The article attributed Kendrick's argument to the fact that the rally was mainly driven by short covering, while the inflow of cash Bitcoin ETF funds also began to recover. The article also mentioned Kendrick's view that lower open interest could leave room for more investors to re-enter when prices rise.

But the industry is not universally optimistic. The article also includes a range of risks and social policy issues that may affect emotions. For example, the article cited a Reuters/Ipsos poll that showed that many Americans believed it was "inappropriate" for President Trump and his family to profit from cryptocurrency investments while in office. The article also quoted Bitget CEO Gracy Chen, who expects Bitcoin to remain roughly near current levels until the end of the year, while pointing out that interest rates and the broader macro environment are potential downward drivers; she also said that according to the article, Bitcoin's price at the end of the year may be $10,000 to $20,000 higher or lower than current levels.

Finally, the article points out the protocol-level risks associated with MANTRA tokens. Reports said that after MANTRA Chain stopped issuing blocks, its native tokens fell to a historical low of approximately $0.004126. The team later said it had made a precautionary suspension while investigating an incident. The article stated that endpoint transactions were frozen and noted that MANTRA said on August 22 that a vulnerability in the Cosms-EVM module had been fixed, the network had been restored, and no user funds had been affected-although the disruption caused by the suspension highlighted the fact that even during a general market rebound, unexpected operating events can put pressure on tokens.

As Bitcoin remains above key long-term technical levels and ETF demand returns, the next test for traders and long-term investors is whether the recovery of the 200-day line can continue beyond the initial surge-especially as the U.S. regulatory timeline remains variable between CLARITY Act legislative action, SEC rulemaking and potential CFTC proposals.