# Bitcoin's 23% rally signals start of new cycle US debt policy revives crypto markets - **Source:** [Cointelegraph.com News](https://brifing.si/source/2e81e982-0137-4db0-8ac2-351f37085775) - **Published:** 2026-08-23 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/9f72e26a-e46a-42d5-aec2-59193ae6dc2c ## Historic week for Bitcoin Bitcoin surged 23.5% this week to $77,559, marking its biggest weekly percentage gain since March 2023. It crossed above the 200-day moving average for the first time. Ethereum rose 31%, Solana 28%, and XRP soared 53%. Crypto ETFs attracted $2.61 billion in inflows over the past week. ## US debt crisis warning Ray Dalio, founder of Bridgewater Associates, warned the US could face a debt crisis within three years. US debt surpassed $40 trillion with growing budget deficits. Dalio recommended allocating 15% of portfolios to gold and some Bitcoin. Debt interest payments now exceed Medicare costs. ## Crypto regulation moves Discussions continue on the CLARITY Act in the US. The bill passed by the House faces a Senate vote on September 15. The SEC proposed new rules allowing crypto projects to issue up to $5 million in tokens over four years. CFTC Chair Michael Selig said alternative regulations are ready if the bill fails. ## Institutional investors return Michael Saylor's Bitcoin investments crossed the breakeven point of $75,385. Stocks of crypto-related companies like Coinbase and Robinhood saw double-digit gains. Polymarket odds of Bitcoin reaching $90,000 before 2027 stand at 48%. Barchart data shows Bitcoin above its 200-day average. ## Political impacts President Trump met with Coinbase CEO Brian Armstrong and the Winklevoss twins, urging passage of the CLARITY Act. Hyperliquid's price rose 20% after Trump's comments. Democratic senators said they wouldn't support the bill without ethics provisions. ## SEC's new rules The SEC proposed new rules for crypto projects, starting a 60-day comment period. The rules allow $5 million in token issuance over four years and $75 million over 12 months. Commissioner Hester Peirce said the rules would bring clarity to the crypto space. ## Market dynamics The Kobeissi Letter attributed crypto and precious metals gains to inflation, deficit spending, and Treasury policies. The Treasury Department announced it would double debt buybacks to $4 billion. These moves supported asset prices across both categories. ## Beginning of a new cycle? Bitcoin's break above the 200-day average and increasing institutional investment are seen as signs of a new bull market. US debt concerns and regulatory developments are boosting interest in crypto assets. Total market capitalization reached $2.63 trillion. ## Sources covering this story - https://cointelegraph.com/magazine/we-are-back-bitcoins-23-rally-on-us-debt-policy-hodlers-digest?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._