Overview of the cryptocurrency market: Bitcoin returns to US$80,000, US…

August 2026: Cryptocurrency markets record biggest weekly gain in five years

In late August 2026, cryptocurrency markets underwent a dramatic momentum shift, with digital asset prices soaring, breaking five-year records. The total crypto market cap climbed about 24% in one week, increasing by more than $474 billion to a staggering $2.67 trillion. This is the biggest weekly gain in the crypto market since February 2021. Market sentiment has shifted from chronic fear to extreme greed, and this article delves into the core drivers, institutional data, and technical indicators behind this price move.

Treasury repurchase program triggers crypto market reaction

The sudden reversal of market sentiment can be traced directly to Washington's macroeconomic policy shift. On August 19, 2026, the U.S. Treasury Department announced that it would double the maximum long-term repurchase size of 10 to 30-year nominal treasury bonds. Starting September 9, the repurchase limit per operation will be increased from $2 billion to at least $4 billion. The announcement immediately weakened the U.S. dollar and fell bond yields, prompting investors to turn to risky assets such as cryptocurrencies, catching bearish traders off guard.

This dynamic triggered a historic short draw. On August 20 alone, the short clearing amount reached US$2.74 billion, clearing 172,202 traders in a single day. Later, during the breakthrough window period, this figure eventually climbed to more than US$4 billion. The speed at which market sentiment shifts is equally historic. The Crypto Fear and Greed Index soared to 74 on August 25, the highest level since October 5, 2025, while CoinMarketCap's index reached 81, clearly positioning the market as "extremely greedy".

These favorable liquidity conditions are particularly good for risky assets. Wall Street giant Goldman Sachs is cautiously optimistic about the second half of 2026, raising its target price for Coinbase to $196 and maintaining its buy rating. Similarly, Canaccord Genuity raised MicroStrategy's price target by 35% to $175 and announced that the stock's expectations have "improved significantly."

Technical analysis reveals Bitcoin's rising potential

Analysis shows that Bitcoin provided most of the price momentum, rising 24%, briefly breaking through US$81,250, the first time since May, before falling back to consolidating around US$79,250. From a technical perspective, Bitcoin decisively broke the 200-day simple moving average of $69,166, marking a major shift in the market structure from its summer dullness. However, the rapid rise pushed the daily relative strength index higher to 82.44, putting it into deeply overbought territory.

Traders are currently closely watching Deribit's $6.4 billion bitcoin options scheduled to expire on Friday. Deribit's chief risk officer explained the stakes: "More than $500 million in nominal value is within the 5% range of current prices, which could lead to increased pre-maturity gamma hedging activity." Actions by market makers to hedge risks can cause spot prices to be locked near key strike prices, especially the popular strike price of $80,000 call options.

Liquidation heat chart confirms that if prices fall below the support level of $78,000, they may fall further into the liquidity area around $77,200. Conversely, to resume bullish momentum, Bitcoin needs to close firmly in the range of $79,200 to $80,000 and target it to challenge the resistance zone of $82,000 to $83,000 in May.

Spot ETFs and institutional markets deeply boost optimism

The rise in cryptocurrencies coincides with major institutional developments in the privacy and altcoins fields. On August 25, Gray officially launched the first U.S. exchange-traded product to provide direct exposure to Zcash on the New York Stock Exchange's High Growth Board. The head of Gray Index provided insight into the token's institutional appeal: "As artificial intelligence reshapes the way financial activity is monitored, we believe the need for true financial privacy will only grow."

Zcash rose sharply on ETF expectations, soaring 60% to an eight-year high of about $880, before traders began taking profits and the price fell back to $787. Zcash's network momentum has also been further consolidated by the recent Ironwood upgrade, which successfully fixed a key vulnerability in Orchard's hidden pool and introduced new accounting rules to prevent counterfeiting.

On August 24 alone, the spot Bitcoin ETF absorbed a staggering $337.56 million, while the Ethereum Fund also attracted $115.57 million. The Solana ETF also recorded its largest single-day inflow since late 2025, reaching $33.49 million. Although market sentiment is in a state of "extreme greed," some analysts warned that the rally lacks broad structural confirmation because ETFs as a whole remain net sellers in 2026, with total year-to-date holdings falling by approximately 92,000 bitcoins.