Week 3, August 2026
Reporting Period: August 12 – 18, 2026
Data as of August 18, 2026
Over the past week, the crypto market remained range-bound under the dual influence of macroeconomic data and geopolitical developments. Bitcoin traded repeatedly within the $62,000–$65,000 range and stood at around $64,246 as of August 18, still unable to achieve a decisive breakout. The market remains caught in a "liquidity without direction" environment.
Inflation cooled across the board, further weakening rate hike expectations. On August 12, the U.S. Bureau of Labor Statistics released July CPI data. Headline CPI rose 3.4% year over year, in line with expectations and down from 3.5% previously, while core CPI increased 2.5%, also matching expectations and easing from 2.6%. The annual core CPI rate fell to its lowest level in more than four years. On August 13, July PPI came in at 4.7% year over year, below both the 4.9% market forecast and the previous reading of 5.5%. With two consecutive inflation reports showing signs of cooling, expectations for a September Fed rate hike weakened further, with traders pricing in roughly a 32% chance of a hike.
Retail sales unexpectedly turned negative, signaling softer consumer demand. U.S. retail sales fell 0.6% month over month in July, according to data released on August 14, marking the first decline in nine months and the sharpest monthly drop since May last year. Meanwhile, the University of Michigan's preliminary August Consumer Sentiment Index fell to 51.0 from 55.2 in July, ending two consecutive months of improvement. The continued run of weaker data further reduced market expectations for additional Fed rate hikes.
Geopolitical tensions remain deadlocked as traffic through the Strait of Hormuz nearly grinds to a halt. The 60-day U.S.-Iran ceasefire agreement expired on August 17, with both sides indicating that they would not seek an extension of the memorandum of understanding. As of August 12, U.S. Central Command had redirected 59 commercial vessels, while Iran maintained that the Strait of Hormuz remained closed. Only eight vessels transited the strait on August 12, far below the pre-conflict daily average of 120-130. By August 18, only a handful of oil tankers were passing through, leaving shipping activity nearly at a standstill. There are currently no signs of formal negotiations or progress toward an agreement between the U.S. and Iran.
ETF flows: Outflows followed by a sharp rebound point to institutional dip-buying. During the second week of August (August 10-14), U.S. spot Bitcoin ETFs recorded combined net outflows of $393 million, reversing the previous week's strong $854 million net inflow. Outflows totaled $61.1 million on August 12, $131.1 million on August 13, and $56.2 million on August 14. However, on August 17, spot Bitcoin ETFs recorded $298 million in net inflows, the highest single-day total since May 21, ending three consecutive days of outflows. The rebound suggests that institutions stepped up allocations as prices pulled back.
Overall, the market is being pulled by multiple forces: cooling inflation, a geopolitical stalemate, and ETF flows shifting from outflows back to inflows. Bitcoin has remained range-bound between $62,000 and $65,000 for several weeks, with the trading range gradually narrowing and a directional breakout drawing closer.
In the latter half of the second week of August, U.S. spot Bitcoin ETF flows showed a notable "outflows first, inflows later" pattern. According to Farside Investors, U.S. spot Bitcoin ETFs recorded combined net outflows of approximately $248.4 million across the three trading days from August 12 to 14, with Fidelity's FBTC accounting for the largest share of the outflows.
However, on August 17, ETF flows staged a dramatic reversal. U.S. spot Bitcoin ETFs recorded $137.3 million in net inflows for the day, while another data source put the figure as high as $297.5 million, marking the largest single-day net inflow since May 21. Fidelity's FBTC led with $111.9 million in inflows, followed by ARKB at $14.2 million and Morgan Stanley's MSBT at $11.2 million. The inflows offset approximately 55% of the cumulative outflows recorded over the previous three trading days.
On the Ethereum side, U.S. spot Ethereum ETFs recorded $5 million in net inflows on August 17, with Fidelity's FETH contributing $4.3 million. This followed August 14, when all spot Ethereum ETFs recorded zero net flows.
Meanwhile, institutional and retail behavior continued to diverge. Despite strong institutional ETF inflows during the price pullback, the Crypto Fear & Greed Index remained in the Fear zone at 29-35. The pattern of institutional positioning within the $62,000-$64,000 range remained intact.
Over the past week, Bitcoin has continued to consolidate within a narrow range of $62,000 to $65,000.
Following the CPI release, Bitcoin briefly slipped from around $64,500 to $64,000, failing to stage a meaningful rebound. On August 14, Bitcoin fell 1.3% intraday and closed near $62,570, marking its lowest level of the month. On August 17, Bitcoin rebounded 2% to $64,154 from $62,751, with buyers defending the $63,000 support zone for a third consecutive trading day. By August 18, Bitcoin was trading at $64,246 after briefly breaking above $65,000 intraday.
Trading Pair | Weekly Change | Price Range |
Bitcoin (BTC) | -0.5% ~ 0% | $62,500 – $65,000 |
Ethereum (ETH) | -1% ~ 0% | $1,850 – $1,920 |
Solana (SOL) | -1% ~ +1% | $74 – $82 |
XRP | -2% ~ -1% | $0.99 – $1.06 |
Total Market Cap | 0% ~ +1% | $2.17T – $2.28T |
Data sources: MEXC, CoinMarketCap, CoinGecko
Technical Outlook: Bitcoin has remained range-bound between $62,000 and $65,000 for several weeks. Despite the S&P 500 and Nasdaq reaching fresh all-time highs, Bitcoin failed to benefit from improving inflation data. After another unsuccessful attempt to break above $65,000, it continued trading near $64,000, highlighting a clear divergence in asset performance. Analysts noted that Bitcoin had already posted short-term gains after a bullish daily MACD crossover, prompting some short-term traders to take profits above $64,000. With market liquidity currently thin, even modest selling pressure can trigger sharp pullbacks. Near-term support lies at $62,500-$63,000, while resistance is seen at $65,000-$65,500. The Fed meeting minutes due Wednesday could serve as the key catalyst for breaking the current stalemate.
For the week ending August 16 (August 10-16), the total stablecoin market capitalization stood at approximately $306.5 billion, up around 1.49% from $302.0 billion the previous week. Over a longer time horizon, however, the stablecoin market has contracted by roughly $15-16 billion, or about 5%, from its May 20 peak of approximately $321.0 billion, marking the third-largest drawdown in the sector's history. In July, total stablecoin market capitalization stood at around $308.3 billion, extending net outflows for a third consecutive month. From May through July, cumulative outflows reached approximately $13.3 billion.
USDT: Market capitalization edged lower. USDT's market cap stood at approximately $182.95 billion, accounting for 59.69% of the total stablecoin market, down about 0.08% from $183.1 billion the previous week. Its circulating supply was approximately $183.0 billion. Since May, USDT's market cap has declined significantly from around $189.0 billion. According to CryptoQuant, USDT supply has fallen by approximately $4 billion over the past 60 days.
USDC: Supply also contracted. USDC's market cap stood at approximately $71.86 billion, representing 23.44% of the total stablecoin market, down about 0.47% from $72.2 billion the previous week. Although USDC's market cap increased by around $8 billion over the past year to approximately $72 billion, it has fallen significantly from its March peak of around $80 billion. As of August 6, USDC's circulating supply had declined from $73.3 billion at the end of June to approximately $71.8 billion, a decrease of about $1.5 billion over five weeks.
Market Characteristics: An orderly exit rather than a crisis of confidence. Cumberland noted that this stablecoin drawdown differs from previous episodes, as it has not been accompanied by significant price instability. USDT has mostly traded between $0.9988 and $0.9992, while USDC has remained above $0.9997, with both maintaining stable pegs. This suggests that capital is exiting the crypto market in an orderly manner rather than reflecting a loss of confidence in USDT or USDC themselves. At the same time, capital is shifting from traditional stablecoins toward yield-bearing on-chain cash equivalents, which have grown by 101% since the beginning of 2026.
U.S. equities extended their gains this week, supported by easing inflation data, before closing lower on Monday amid a geopolitical stalemate.
August 12-13: Cooling CPI and PPI data reinforced signs of moderating inflation and boosted market sentiment. July headline CPI rose 3.4% year over year, while core CPI increased 2.5%, both in line with expectations. PPI rose 4.7% year over year, below the 4.9% market forecast. The S&P 500 closed higher for a third consecutive week.
Aug 14: U.S. retail sales fell 0.6% month over month in July, marking the first decline in nine months and the sharpest monthly drop since May last year. Meanwhile, the University of Michigan's preliminary Consumer Sentiment Index for August fell to 51.0 from 55.2. Signs of weakening consumer demand, combined with geopolitical uncertainty, pushed all three major U.S. stock indexes lower.
Aug 18 (Mon): The expiration of the U.S.-Iran ceasefire agreement and renewed tensions in the Middle East weighed on U.S. stocks during the session. The S&P 500 fell 0.52%-0.61% to 7,745.06-7,709.69, the Nasdaq declined 0.32%-0.61% to 26,644.91-26,368, while the Dow Jones Industrial Average dropped 0.10%-0.50%.
Index | Weekly Change | Key Drivers | On-Chain Mapping |
Nasdaq Composite | Approx. -0.5% to 0% | Supported by cooling CPI/PPI, but dragged down by geopolitical stalemate on Monday | |
S&P 500 | Approx. +0.2% to +0.5% | Boosted by cooling CPI/PPI and strong corporate earnings; closed higher for the third consecutive week | |
Dow Jones Industrial | Approx. -0.1% to +0.2% | Weighed down by geopolitical stalemate | |
The key theme in commodities this week remained the continued support for oil prices from the U.S.-Iran geopolitical stalemate, while precious metals traded at elevated levels amid cooling inflation and persistent geopolitical uncertainty.
Crude Oil: Geopolitical tensions pushed oil prices higher. The 60-day U.S.-Iran ceasefire agreement officially expired on August 17, with both sides indicating that they would not seek an extension. Continued disruptions to shipping through the Strait of Hormuz provided firm support for oil prices. On August 12, WTI crude settled at $83.27 per barrel, while Brent crude settled at $88.98 per barrel, both up slightly by 0.08% from the previous session. On August 18, WTI rose further to $84.50 per barrel (+2.55%), while Brent settled at $90.87 per barrel (+2.65%). For the week, Brent crude gained approximately 6.0%.
Gold: Cooling inflation lifted gold prices before profit-taking triggered a pullback from elevated levels. Following the release of U.S. CPI data on August 12, weaker rate hike expectations reduced a key headwind for gold. Spot gold gained 0.93% that day to $4,408.73 per ounce, briefly reaching its highest level in more than two months. Prices later eased as profit-taking emerged above $4,400. As of August 18, spot gold closed near $4,416.17 per ounce.
Silver: Silver broadly tracked gold but showed greater volatility. The LBMA Silver Price was fixed at $66.250 per ounce on August 12. On August 18, the COMEX September 2026 silver contract closed at $65.905 per ounce (+1.22%), while spot silver fluctuated within the $63-$66 range.
Asset | Weekly Performance | Key Events | On-Chain Mapping |
WTI Crude Oil | $83 – $85/barrel | Ceasefire protocol expires; U.S.-Iran stalemate continues | |
Brent Crude Oil | $89 – $91/barrel | Reclaimed $90 level; weekly gain of ~6% | |
Gold | $4,400 – $4,450/oz | Cooling CPI data pushed gold to a two-month high, followed by consolidation at elevated levels | |
Silver | $63 – $66/oz | Higher volatility than Gold; tracks Gold's price fluctuations | |
This week, the bond market showed a clear divergence between the short and long ends of the curve. Short-term yields moved lower as CPI and PPI came in either in line with or below expectations, pushing market expectations for a September rate hike down from 47% to around 38%. The 2-year Treasury yield fell by about 3 basis points to 4.17%. By contrast, longer-term yields continued to rise amid geopolitical risks, fiscal deficit concerns, and persistent supply pressure in the long-duration Treasury market, with the 10-year yield climbing about 5 basis points to 4.69%.
The 30-year U.S. Treasury yield reached 5.31% on August 17, its highest level since 2007. The expiration of the U.S.-Iran ceasefire agreement that day, Brent crude's return above $90 per barrel, and growing fiscal concerns as U.S. government debt approached $40 trillion all contributed to higher risk premiums for long-term inflation and financing risk. The 2s10s spread widened to 54 basis points, its highest level since mid-May.
Institutional Views: In early August, JPMorgan raised its year-end 2026 forecast for the 10-year U.S. Treasury yield from 4.70% to 4.85% and lifted its 30-year yield target from 5.20% to 5.40%. The bank also brought forward its forecast for the Fed's next rate hike from the second half of 2027 to December 2026. Meanwhile, ICBC International noted that cooling inflation and retail sales data have reduced rate hike expectations and pushed short-term yields lower, while weak demand at long-term Treasury auctions, fiscal deficit concerns, and rising term premiums continue to drive long-term yields higher, reinforcing the divergence across the yield curve.
MEXC's tokenized Treasury product TLTON/USDT, which tracks the TLT ETF, provides users with a convenient way to gain exposure to views on long-duration U.S. Treasury yields. The TLT ETF recently traded at a net asset value of around $84, with a 30-day SEC yield of 5.03%. International tokenized ETF trading pairs, including EEMON/USDT, EFAON/USDT, and INDAON/USDT, are also available on MEXC.
The CPI and PPI data released on August 12-13 painted a picture of continued improvement in inflation.
CPI: Moderated gradually. Headline CPI rose 3.4% year over year in July, in line with expectations and down from 3.5% previously. Core CPI increased 2.5% year over year, also matching expectations and easing from 2.6%, marking its lowest annual growth rate in more than four years. On a month-over-month basis, headline CPI rebounded from -0.4% in June to +0.1%, while core CPI rose 0.2% after remaining flat previously. A 1.5% monthly decline in energy prices was the main factor weighing on headline inflation.
PPI: Came in below expectations. July PPI rose 4.7% year over year, below the 4.9% market forecast and down from 5.5% previously. On a month-over-month basis, PPI was unchanged, compared with expectations for a 0.2% increase. Core PPI rose 0.2% month over month, below the 0.3% forecast.
Retail sales and consumer sentiment weakened in tandem. U.S. retail sales fell 0.6% month over month in July, marking the first decline in nine months and the sharpest monthly drop since May last year. Meanwhile, the University of Michigan's preliminary Consumer Sentiment Index for August fell to 51.0 from 55.2, ending two consecutive months of improvement. One-year inflation expectations edged up to 4.3% from 4.2%.
Market Reaction: A run of softer-than-expected data further reduced expectations for another Fed rate hike in September, with traders' pricing for additional tightening falling from 47% before the releases to around 38%.
Impact on Crypto Assets: Cooling inflation reduces the urgency for further Fed tightening, providing a modest tailwind for non-yielding risk assets. However, headline CPI at 3.4% remains well above the Fed's 2% target, meaning a full return of the "rate-cut trade" will require further confirmation from incoming data. Bitcoin failed to stage a meaningful rebound following the CPI release, suggesting that much of the macro improvement may already have been priced in.
In the latter half of the second week of August, Bitcoin ETF flows saw a dramatic shift.
Midweek Outflows: From August 12 to 14, U.S. spot Bitcoin ETFs recorded combined net outflows of approximately $248.4 million across three trading days. Fidelity's FBTC accounted for the largest share of the outflows, with $46.8 million leaving the fund on August 12 and another $55.1 million on August 13.
Monday Reversal: On August 17, U.S. spot Bitcoin ETFs recorded net inflows of $137.3 million, while another Farside Investors data set put the figure at $297.5 million. Fidelity's FBTC led with $111.9 million in inflows, followed by ARKB at $14.2 million and Morgan Stanley's MSBT at $11.2 million. Monday's inflows offset approximately 55% of the cumulative outflows recorded over the previous three trading days.
Ethereum ETFs Also Reversed: U.S. spot Ethereum ETFs recorded $30.85 million in net inflows on August 17, with BlackRock's ETHA contributing $25.9 million. This followed August 14, when all spot Ethereum ETFs recorded zero net flows.
Key Signal: Institutional buying during the price pullback stood in sharp contrast to continued retail fear. The rapid shift in ETF flows from outflows to strong inflows suggests that institutions remain committed to accumulating Bitcoin within the $62,000-$64,000 range.
The biggest geopolitical variable this week was the formal expiration of the 60-day U.S.-Iran ceasefire agreement on August 17.
No Extension: The U.S. and Iran signed a 14-point memorandum of understanding on June 17, agreeing to complete nuclear negotiations within 60 days. After the agreement expired on August 17, Trump made clear that the negotiation deadline would not be extended. He said, "I have no timeline. I'm in no rush," while again threatening to turn the Strait of Hormuz into U.S. territorial waters. Iran responded sarcastically, warning that vessels attempting to transit the strait based on trust in Trump would face consequences.
Shipping Through the Strait Disrupted: Shipping through the Strait of Hormuz nearly ground to a halt over the weekend after another tanker attack. The U.S. said it could impose an indefinite maritime blockade on Iran. There are currently no formal negotiations between the U.S. and Iran, nor any visible signs of progress toward an agreement.
Impact on Crypto Assets: The prolonged Strait of Hormuz stalemate continues to support oil prices, which in turn keeps upward pressure on inflation expectations. For crypto assets, the geopolitical transmission channel remains intact: tensions in the strait → elevated oil prices → higher inflation expectations → rising long-term yields. However, geopolitical risks appear to be largely priced in at current levels. Unless the situation escalates materially or unexpectedly eases, the marginal impact on BTC is likely to remain limited.
Ranking | Keywords | Core Drivers | On-Chain Mapping |
1 | CPI and PPI Decline | July CPI YoY fell to 3.4%, with core CPI at 2.5%. Consequently, market expectations for a September rate hike dropped from 47% to 38%. | |
2 | Bitcoin ETFs See $393M Weekly Net Outflow | Net outflows persisted for three consecutive days (Aug 12–14), totaling ~$248.4 million. This reversed the previous week's strong inflow trend of $854 million. | BTC/USDT |
3 | U.S.-Iran Ceasefire Expires; Hormuz Tensions Rise | The 60-day ceasefire protocol expired on Aug 17 without extension. Trump declined further negotiations, while Iran issued an ultimatum, causing shipping through the Strait of Hormuz to nearly halt. | |
4 | S&P 500 Surpasses 7,800 Milestone | On Aug 13, the index hit a record intraday high of 7,816.70. Buoyed by easing inflation, the Dow and Nasdaq also rallied, extending the bullish momentum across major U.S. indices. | |
5 | BTC Consolidates in $62k–$65k Range | Bitcoin has traded sideways between $62,000 and $65,000 for several weeks, closing near $62,570 on Aug 14. Bulls and bears remain locked in a tug-of-war between inflation relief hopes and ETF outflow pressures. |
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6 | 30-Year U.S. Treasury Yield Hits 5.31% | Reaching a new high since 2007, long-end rates are pressured by fiscal deficit concerns as U.S. debt approaches $40 trillion, alongside a rising term premium. |
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Financial Calendar (Aug 19–Aug 25, SGT)
Date | Event/Indicator | Market Impact | Tokenized Underlying |
Thu, Aug 20, 02:00 | FOMC Minutes (July Meeting) | Key focus of the week: Markets will seek clues regarding the September policy trajectory. | |
Thu, Aug 20, 20:30 | U.S. Initial Jobless Claims (Week ending Aug 15) | High-frequency indicator of labor market health | BTC/USDT |
Fri, Aug 21, 21:45 | U.S .August Markit Manufacturing & Services PMI (Preliminary) | Critical signal for assessing economic momentum | BTC/USDT |
Sat, Aug 22 | Jackson Hole Symposium Preview | Chairman Walsh may provide key policy signals | BTC/USDT |
Ongoing | U.S.-Iran Tensions in the Strait of Hormuz | Monitor post-ceasefire protocol developments: potential escalation or turning point | |
Ongoing | ETF Fund Flows | Assess sustainability of the reversal inflow trend observed on Aug 17 | BTC/USDT |
Ongoing | BTC $65,000 Resistance Level | A confirmed breakout could determine the near-term direction | BTC/USDT |
| Ongoing | BTC $65,000 Resistance Level | After four consecutive false breakouts, whether BTC can firmly hold above $65,000 will be key to the near-term direction | BTC/USDT |
MEXC's annual brand event, "MEXC 0808: Stock Season With $500,000," is now in full swing and will run until August 29 at 07:59 (UTC+8). During the event, users can trade Stock Futures, tokenized stocks, and RealStocks with 0 fees and share a total prize pool of $500,000. The event features eight "Opportunity Map" tasks, with one lucky draw ticket awarded for each completed task. Rewards include a 3,888 USDT Dream Fund and Stock Futures position airdrops worth up to 880 USDT. Meanwhile, the MEXC 0808 AI Avatar campaign is also underway, allowing users to create an AI avatar for free and compete for $68,880 worth of NVIDIA stock rewards.
On August 16, MEXC announced an expansion of its tokenized stock lineup with five new Ondo-related trading pairs, extending blockchain-based equity exposure into themes including AI infrastructure, semiconductors, enterprise software, and strategic rare earth materials. The new assets include AXT Inc. (AXTION/USDT) — semiconductor testing; Aehr Test Systems (AEHRON/USDT) — semiconductor testing equipment; Applied Digital (APLDON/USDT) — AI high-performance computing and digital infrastructure; USA Rare Earth (USARON/USDT) — strategic rare earth materials; and SAP SE (SAPON/USDT) — enterprise software. This marks the 27th batch of tokenized stock trading pairs launched through MEXC's collaboration with Ondo.
The expansion comes amid explosive growth in tokenized U.S. stock trading volume. According to data from MEXC and CoinGecko, U.S. stock-related trading volume across six major centralized exchanges surged 337.4% month over month to $189.84 billion in June 2026. Among the tracked traditional asset trading volume, stock products accounted for 48.3%, surpassing precious metals to become the largest traditional asset category.
At 12:00 on August 18 (UTC+8), MEXC Pre-Market Trading officially listed Aligned (ALIGN). Aligned is a vertically integrated technology stack for building applications on the verifiable internet, spanning areas such as financial infrastructure and AI systems. It provides a foundation for provable execution and one-click solutions for wallets, rollups, interoperability, and ZK services. ALIGN has a total supply of 10 billion tokens. MEXC Pre-Market Trading is an OTC service that allows users to buy and sell new tokens before they are officially listed for Spot trading, with buyers and sellers able to set their own prices and match trades.
Disclaimer: This report is for research purposes only and does not constitute investment advice. Crypto assets are highly volatile, and geopolitical events and macroeconomic developments may have a significant impact on the market. Investors should make independent decisions based on their own risk tolerance. Any platform products or trading pairs mentioned in this report are presented solely for informational purposes and do not constitute a recommendation to buy or sell.