Crypto market surges 22% in biggest week in over two years

The crypto market just delivered one of its most schizophrenic weeks in recent memory. Total market capitalization gained 22% over the seven days ending August 22-23, the strongest weekly performance in over two years, while simultaneously hosting a flash crash that vaporized $108 billion in minutes and triggered roughly $5 billion in liquidations. Bitcoin closed the week near $77,000-$78,000 after briefly tagging intraday highs around $79,000-$80,000, marking its best weekly gain since March 2024. The broader market moved with it, and in some cases, well past it. What actually drove the rally Two catalysts did most of the heavy lifting. A Treasury buyback announcement gave markets a liquidity signal they were clearly hungry for. Separately, optimism around the Clarity Act, the regulatory framework for digital assets moving through Washington, lit a fire under a market that had been waiting on policy direction for months. Short sellers paid the price. A wave of short-covering amplified the upward move, as traders who had bet against the market scrambled to close positions into rising prices. Altcoins responded even more sharply than Bitcoin. XRP gained between 46% and 51% on the we...