Bitcoin and Ether posted their strongest weekly gains of 2026 after a combination of U.S. policy signals and a sharp return of capital to spot crypto exchange-traded funds lifted the market. Bitcoin rose 22.9% during the week, climbing from roughly $62,800 to an intraday high near $79,500 on Aug. 21, while Ether gained 29.8% after moving from about $1,900 to $2,546.
The move represented Bitcoin’s largest weekly peak-to-trough advance since March 2023, with the asset briefly showing a gain of more than 26% from the week’s opening level. Ether outpaced Bitcoin, pushing the ETH/BTC ratio back to around 0.031 and lifting Ether’s market capitalization above $280 billion.
Two developments in Washington arrived as the rally accelerated. The U.S. Treasury said on Aug. 19 that it would increase the size of buybacks of 10- to 30-year Treasury bonds from $2 billion per operation to at least $4 billion. Treasury Secretary Scott Bessent announced the adjustment after selling pressure pushed long-dated bond yields higher.
Larger Treasury buybacks can improve liquidity in the long-end government bond market by giving dealers another buyer for existing securities. Crypto prices do not move mechanically with bond purchases, but the announcement came during a period in which traders were reassessing pressure from higher long-term yields on risk-sensitive assets.
Days later, President Donald Trump met cryptocurrency industry executives at the White House and called on Congress to pass the Digital Asset Market Clarity Act. The proposed legislation would set boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission, an issue that has shaped token listings, product launches and enforcement disputes in the U.S. market.
The SEC also released a draft proposal on Aug. 18 concerning public crypto token sales. The proposal remains at the draft stage, yet its release added to signs that federal agencies and lawmakers are moving toward more detailed rules for digital-asset issuance and trading.
Etf demand returns after a week of outflows
U.S.-listed spot Bitcoin and Ether ETFs recorded combined net inflows of $2.6 billion in the week through Aug. 21, reversing a combined $392 million outflow in the previous week. The weekly total was the largest since October 2025 and marked the biggest weekly inflow for both spot Bitcoin and spot Ether funds in 2026.
Spot Bitcoin ETFs accounted for about $1.9 billion of the total. Weekly trading volume in those products increased from $6.9 billion to $22.1 billion, a 219% rise, while reported total net assets climbed from $76.6 billion to $96.1 billion.
The scale of the increase indicates that the move was not confined to offshore derivatives markets or thinly traded tokens. U.S. spot ETF activity brought large regulated products back into the center of the rally, with trading volume rising far faster than in the preceding week.
Spot Ether ETFs added $697.2 million during the same period, their strongest weekly inflow since the week ending Oct. 3, 2025. Weekly Ether ETF trading volume rose from $1.9 billion to $6.9 billion, an increase of 259.4%.
Ether’s performance was supported by a tighter available supply picture. Exchange-held Ether balances fell from about 7.70 million ETH in early June to roughly 6.54 million ETH by mid-August, a decline of around 15%. More than 42 million ETH had also been committed to staking, limiting the portion of supply immediately available for trading on centralized venues.
That combination can amplify price swings when demand rises. ETF buying does not necessarily remove tokens from exchange order books on a one-for-one basis, but reduced exchange balances and extensive staking leave less readily tradable Ether available during periods of strong demand.
High-beta tokens surge as risk appetite spreads
The rally extended well beyond Bitcoin and Ether, though gains among smaller tokens were considerably more volatile. ENA rose 100.75% over the week through Aug. 23, making it the largest gainer among the top 50 crypto assets by market value in the supplied market data.
PUMP gained between 88% and 99% during the week and pushed its market capitalization above $2 billion. STX advanced by roughly 82% to 94%, while the TRUMP token rose between 79% and 91%. ZEC gained 75.15%, traded near $851, and reached a new all-time high during the week.
ZEC stood apart from the other major gainers because it had fully recovered its earlier decline and established a fresh record. ENA remained about 89.2% below its historical peak despite its weekly jump, while STX was still around 94% below its previous high. PUMP remained roughly 39.7% below its record.
Meme-linked assets also saw abrupt moves. A BNB Chain token known as “牛来” rose 30.3% in one day on Aug. 21 and briefly reached a market capitalization of about $70 million. Solana-based Book of Meme, or BOME, recorded a weekly increase of 95.57%.
The dispersion between ETF-backed majors and smaller tokens remains substantial. Bitcoin and Ether drew measurable fund inflows through regulated U.S. products, while gains in meme tokens and other high-beta assets were driven by faster-moving speculative demand and can reverse more sharply.
Congressional action on market-structure legislation could become the next policy test for the rally. A clearer division of responsibility between the SEC and CFTC would give token issuers, trading venues and fund sponsors a more defined framework for operating in the U.S. Until that process produces binding rules, the market is likely to keep reacting strongly to each legislative step, regulatory proposal and shift in ETF flows.
For more on policy shifts and market sentiment, explore our outlook in what’s next for Bitcoin.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
