The cryptocurrency market delivered a strong rebound this week, with Bitcoin and Ethereum leading a broad recovery across major digital assets. Bitcoin climbed roughly 24% over seven days and returned above the $80,000 level for the first time since May 15. Ethereum also posted an impressive weekly gain of around 29%, while Solana benefited from strong institutional interest, record network activity and growing ETF demand.
Despite the bullish momentum, the market remains sensitive to US monetary policy. Federal Reserve Chair Kevin Warsh warned that another interest-rate increase could still be possible if inflation does not move quickly toward the Fed’s 2% target. His comments briefly pushed Bitcoin below $80,000 and reminded investors that macroeconomic conditions remain an important factor for crypto prices.
Bitcoin Returns to $80,000
Bitcoin recovered sharply from below $64,000 on August 19 and climbed above $80,000 during the latest rally. The move represented a gain of approximately 38% from its late-June low below $58,000.
US spot Bitcoin ETFs also provided significant support, recording around $1.92 billion in weekly inflows. Analysts attributed the early stages of the recovery partly to short liquidations and US Treasury buybacks.
However, Bitcoin encountered resistance around the $81,000–$82,000 zone. A sustained breakout above this area could strengthen the bullish case, while failure to clear it may lead to another period of consolidation.
Fed Policy Remains a Key Risk
The crypto rally faced a new challenge after Federal Reserve Chair Kevin Warsh discussed the possibility of another rate hike during his Jackson Hole speech on August 28.
Warsh argued that financial conditions may not be restrictive enough and suggested rates could rise if inflation fails to return quickly toward the Fed’s 2% target. Recent data showed headline PCE inflation at 3.7% annually in July, while core PCE inflation reached 3.3%.
Higher interest rates can reduce demand for riskier assets such as cryptocurrencies. As a result, investors are closely watching upcoming US inflation and economic data.
Solana ETF Surpasses $1 Billion
Solana has also become one of the biggest stories in the US crypto investment market. Bitwise’s Solana Staking ETF became the first Solana fund to surpass $1 billion in assets.
The broader US Solana ETF category has attracted approximately $1.7 billion, showing continued investor interest despite SOL’s weaker performance during the first half of 2026.
Solana itself moved above $100 after gaining around 40% in eight days. Network activity also reached a record 4.2 billion monthly transactions, highlighting the continued growth of activity across the blockchain.
Validators additionally supported a proposal designed to accelerate the reduction of Solana’s inflation rate. If implemented, the proposal could reduce projected issuance by approximately 18.9 million SOL over six years.
Ethereum Gains Nearly 30%
Ethereum has outperformed Bitcoin during the latest seven-day period, gaining approximately 29%. ETH reached around $2,546 before consolidating between $2,450 and $2,500.
ETF demand has been an important factor behind Ethereum’s recovery. US spot Ethereum ETFs attracted approximately $365 million in July, compared with around $205 million for Bitcoin funds.
Fundstrat’s Tom Lee has also argued that a rotation toward Ethereum may have started and suggested that ETH could potentially reach $10,000 within two years.
Charles Schwab Expands Crypto Trading
Traditional financial institutions are also becoming increasingly involved in digital assets. Charles Schwab announced plans to add Solana, Avalanche and Chainlink trading to its crypto service in the coming months.
The expansion would provide Schwab clients with direct access to several major altcoins through an established US brokerage platform. The company previously introduced Bitcoin and Ethereum trading as part of its gradual expansion into digital assets.
Crypto Regulation Continues to Develop
Regulation remains another major theme for the industry. Former US Defense Secretary Mark Esper described the CLARITY Act as a national security issue ahead of the planned September 15 Senate cloture vote.
The legislation aims to clarify regulatory responsibilities between the SEC and CFTC. Supporters argue that clearer rules could encourage blockchain development and crypto businesses to remain in the United States.
Meanwhile, the SEC has proposed a framework that could create a clearer path for public crypto token offerings. The proposal would introduce exemptions and disclosure requirements for companies seeking to sell tokens in the US.
Bitcoin-Backed Mortgages and New Crypto Products
Coinbase and Better have also introduced a Bitcoin-backed mortgage product for eligible borrowers. Instead of selling Bitcoin to fund a mortgage down payment, customers can pledge BTC as collateral.
The companies require Bitcoin worth approximately 250% of the down payment to be pledged. Coinbase One members may also receive a 1% Bitcoin rebate, subject to a $10,000 maximum.
However, borrowers face additional risks because collateral may be liquidated after a 60-day delinquency, while Bitcoin’s price can fluctuate significantly.
Final Thoughts
The latest crypto market recovery highlights growing demand from both retail and institutional investors. Bitcoin has returned to $80,000, Ethereum has gained nearly 30% in a week, and Solana is benefiting from record network activity and growing ETF interest.
At the same time, investors cannot ignore the risks. US interest-rate policy, inflation, regulatory developments and resistance levels could determine whether the current rally develops into a sustained bull market or another temporary recovery.
For now, the $81,000–$82,000 Bitcoin resistance zone, ETF flows, and upcoming US economic data are likely to remain among the most important factors for crypto traders to watch.
