Cryptocurrency markets experienced a strong recovery as Bitcoin rallied more than 23% over the week to trade around $77,559, briefly crossing $79,000. Charting platform Barchart noted that Bitcoin crossed above its 200-day moving average for the first time since November 2025, a technical indicator widely used to gauge longer-term trends.
Other major digital assets also posted significant gains. Ethereum rose 31%, Solana gained 28%, and XRP surged 53%. Bitcoin and Ether exchange-traded funds recorded more than $2.61 billion in combined inflows over the week, while MicroStrategy's Bitcoin holdings crossed the breakeven point of $75,385. Publicly listed crypto-related firms, including Canaan, Metaplanet, Coinbase, and Robinhood, also saw double-digit share price increases.
Analysts attributed the rapid gains to a combination of inflation, deficit spending, and US Treasury policy as the US debt pile crossed $40 trillion. According to The Kobeissi Letter, record government deficit spending and the Treasury Department’s pledge to increase debt buyback operations helped drive momentum in both precious metals and crypto. Bridgewater Associates founder Ray Dalio suggested investors allocate a portion of their portfolios to gold and Bitcoin to prepare for potential fallout from US debt issues.
On the regulatory front, US President Donald Trump urged Congress to pass a fair version of the CLARITY Act following a meeting with crypto executives, including Coinbase CEO Brian Armstrong and Gemini co-founders Cameron and Tyler Winklevoss. The market structure bill faces a procedural vote on September 15 requiring 60 votes in favor. Meanwhile, the US Securities and Exchange Commission proposed new rules offering exemptions for crypto projects issuing up to $5 million in tokens over four years, and up to $75 million during a 12-month period under stricter reporting rules.
Commodity Futures Trading Commission chair Michael Selig stated that the commission would move forward with its own crypto regulations if the CLARITY Act fails to pass the Senate, directing staff to allow registered and non-registered entities to offer leveraged or margined crypto asset trading.
