Last week, the digital asset market was marked by correction: Bitcoin's decline, a drop in most top altcoins, and increased market caution amid conflicting macroeconomic signals and industry events.
Key Market Trends
The market ended the week in decline. By August 31, Bitcoin (BTC) had fallen nearly 5.5%, dropping to $108,900–109,000 and returning to July levels. Ethereum (ETH) declined by 6.2% to $4,452, and XRP fell by 6.8%. BNB and Solana showed the most resilience, recording minimal weekly losses. The total crypto market capitalization decreased to $3.85 trillion, while the Fear and Greed Index remained neutral at 48 points.
Key Events of the Week
- Bitcoin and altcoins continued to correct due to hawkish signals from the U.S. Fed Chair and a weak Nvidia report: investor sentiment turned cautious ahead of September rate decisions.
- Russia announced further tightening of controls over banking operations with digital assets. The Central Bank of Russia is strengthening oversight of financial institutions in the crypto sphere.
- Regulatory developments also affected Western markets: the SEC delayed several ETF decisions for the second time, adding uncertainty to the market.
- Major mining events occurred: IREN Limited (formerly Iris Energy) reported quarterly revenue of $187.3 million and continues expanding infrastructure for cryptocurrency mining and AI cloud services.
Altcoins and Technological Projects
- Growing institutional interest in Ethereum supported its position: despite the correction, ETH remains a leader in the DeFi and NFT sectors.
- Solana and Polygon stood out positively, showing resilience amid declining trading volumes for top-tier cryptocurrencies.
- DEX platform dYdX announced the launch of trading via Telegram in September, which could drive a new wave of user adoption.
- Notable token unlocks via vesting schedules: Jupiter (JUP) unlocked 53.47 million JUP (~$27.5 million) on August 28, increasing short-term market volatility.
Hacking Attacks and Security Incidents
- August recorded the highest hacking losses of the year: total damages reached $163 million (+15% compared to July)[9][10].
- The largest attack targeted Turkish exchange BtcTurk ($54 million); another private investor lost 783 BTC ($91 million) due to social engineering. Other significant incidents included hacks of Odin.fun ($7 million), BetterBank.io ($5 million), and CrediX Finance ($4.5 million).
- Experts note: the industry has entered an "endless war" with hackers, and attacks are becoming increasingly sophisticated.
Macroeconomics and Market Psychology
- The primary internal driver of the week was anticipation of Fed decisions. Traders balanced fears of further monetary tightening against hopes for eased conditions in September. This factor fueled increased volatility and market caution.
- The Fear and Greed Index remained neutral: uncertainty and anticipation of regulatory statements tempered crypto sell-offs.
Geography and Global Initiatives
- Russia is advancing a gold tokenization project and reviewing mining laws at the state level.
- El Salvador is preparing to open unique banks operating exclusively with Bitcoin, solidifying its position as a pioneer in cryptocurrency institutionalization.
Summary
The last week of August 2025 saw sharp corrections in flagship cryptocurrencies, increased hacker activity, and revived discussions about crypto regulation prospects. The market remains in a state of uncertainty and heightened volatility, driven by external macroeconomic signals and industry-level events.