Bitcoin, Ethereum and XRP’s record week: why analysts say the rally may only be starting

A rally that changed the tone of the market

The latest crypto surge has done more than lift prices; it has changed the market’s conversation from survival to acceleration. Milk Road analyst John Gillen argued that the move in Bitcoin, Ethereum and XRP was “the beginning, not the end,” framing last week’s record action as the opening shot of a broader bullish phase rather than a one-off short squeeze [1]. In his reading, Ethereum sits at the center of what comes next because it is increasingly viewed as the settlement layer for tokenization, stablecoins and institutional on-chain finance [1].

That thesis arrived after a week in which Bitcoin posted its largest dollar-denominated weekly gain on record, rising by $14,264 to close the week at $77,387, according to The Block [2]. The same report put Bitcoin’s seven-day gain at 22.7%, a move large enough to turn investor apathy into renewed fear of missing out [2]. At the same time, Coin Edition reported Bitcoin trading near $77,179, Ethereum near $2,435 and XRP around $1.47 on August 24, with weekly gains of 22.8%, 29.2% and 48.7% respectively [5].

The scale matters because crypto rallies often begin with a single asset and then fail to broaden. This time, analysts highlighted the opposite. XRP was up nearly 40% in The Block’s August 21 snapshot, while HYPE, ZEC and LINK also gained more than 30%, and Bitcoin and Ethereum were each up between 24% and 28% at that point [4]. Nexo Dispatch analyst Iliya Kalchev told The Block that the rally was “genuinely broad-based,” a notable contrast with narrower moves that tend to fade more quickly [4].

Why “just a short squeeze” may be too simple

The cleanest bearish explanation is that the rally was forced by short sellers getting wiped out. Gillen acknowledged the liquidation dynamic, saying Bitcoin surged roughly 24% and Ethereum jumped 32% while $4 billion in shorts were liquidated in what he described as the largest crypto short squeeze in history [1]. But his argument is that the squeeze was only the visible spark, not the whole fire.

The Block’s reporting supports that more nuanced view. BTC Markets analyst Rachael Lucas said a move of this magnitude is often driven by a mixture of short covering, spot demand and derivatives positioning, adding that the crucial question is whether spot volume and ETF inflows confirm the move or whether leverage is doing too much of the work [2]. That distinction is now the market’s main diagnostic test. A spot-led rally can create durable support because real buyers absorb supply; a leverage-led rally can unwind violently once funding costs rise or late longs get trapped.

ETF data point toward more than just forced buying. U.S. spot Bitcoin ETFs drew $1.92 billion in net inflows during the August 17–21 trading week, while Ether funds added $697.18 million, according to Bitcoin.com’s summary of SoSoValue data [3]. Combined Bitcoin and Ether ETF inflows reached $2.62 billion, the largest weekly total since October 2025, while Bitcoin ETF trading volume reached $22.1 billion, more than triple the previous week’s $6.9 billion [3]. The data also showed XRP ETFs drawing $39.78 million, with Solana and HYPE funds finishing in positive territory as well [3].

That broadening matters because it suggests institutions are not merely chasing Bitcoin after a headline breakout. Ether’s proportional demand was especially strong: Bitcoin.com reported that Bitcoin’s $1.92 billion weekly inflow equaled about 2.0% of its ETF assets, while Ether’s $697 million represented roughly 4.9% of its asset base [3]. In practical terms, smaller Ether funds absorbed capital at a higher intensity, helping explain why analysts have become more willing to discuss ETH leadership rather than only Bitcoin dominance.

Ethereum’s case: from laggard to institutional trade

Gillen’s strongest claim is not simply that the market is going higher; it is that Ethereum is the real trade within the rally. He argued that Ethereum is the settlement layer for the next stage of crypto adoption, and he linked that view to the growth of tokenized real-world assets and stablecoin-driven network effects [1]. The same report said the tokenized real-world asset market has grown to $44.5 billion and that Ethereum holds 65% of that market across 35 competing chains [1].

That is why the Ethereum story has become more fundamental than cyclical. In previous crypto cycles, ETH often traded as a higher-beta version of Bitcoin: stronger in bull markets, weaker in drawdowns. The current argument is different. Macro investor Jordi Visser told Milk Road that Ethereum can be valued more like a stock because traditional finance can analyze cash flow, yield and network effects tied to stablecoins and tokenization [1]. Galaxy Research VP Lucas Tcheyan also compared current ETH sentiment to Solana after FTX: washed out on the surface, but quietly improving underneath [1].

The ETF figures help translate that narrative into flows. Ether funds took in $697 million during the August 17–21 week, including $220.77 million on Thursday and $184.93 million on Friday, according to Bitcoin.com [3]. If those flows persist, Ethereum may benefit from a supply-demand squeeze that is different from Bitcoin’s scarcity story. Bitcoin’s case rests on fixed issuance and the “digital gold” narrative; Ethereum’s case increasingly rests on activity, fees, staking economics and the value of being the chain where institutional assets settle.

Still, Ethereum’s renewed momentum does not remove risk. If ETF inflows slow, if on-chain activity fails to confirm the valuation story or if leverage becomes too crowded, ETH can underperform quickly. The bullish case is powerful precisely because expectations had been depressed; that also means the market will need evidence, not slogans, to sustain the repricing.

XRP’s breakout and the regulatory sensitivity trade

XRP was the clearest large-cap outperformer in the move. Coin Edition put XRP near $1.47 on August 24, up 48.7% for the week [5]. FX Leaders reported that XRP had climbed roughly 50% to around $1.50 after briefly reaching $1.70, putting it on track for its strongest weekly performance since November 2024 [6]. The Block’s earlier snapshot showed XRP crossing $1.40 for the first time in months and leading a broad altcoin advance [4].

The explanation is partly technical and partly regulatory. Kalchev told The Block that some of XRP’s outperformance appeared linked to a favorable regulatory backdrop and optimism around U.S. crypto legislation and rulemaking [4]. That makes XRP different from Bitcoin and Ethereum in the current tape. Bitcoin is being pulled by macro liquidity and ETF demand; Ethereum is being repriced as a settlement and tokenization platform; XRP is trading as both a catch-up asset and a regulatory-sensitivity asset.

FX Leaders also highlighted a possible $2 objective, while noting that buyers still need to clear several resistance levels before a broader uptrend is confirmed [6]. That caveat is important. A 50% weekly move can validate a thesis, but it can also pull forward demand. For XRP, the next phase depends on whether flows continue after the first breakout, whether traders rotate profits into slower-moving majors, and whether regulatory optimism turns into concrete market structure improvements.

The macro trigger and the liquidity question

Several analysts tied the rally to expectations of improved liquidity. Gillen cited two catalysts hitting crypto order books at once: Treasury Secretary Scott Bessent’s bond buyback announcement and President Donald Trump publicly naming Hyperliquid at the White House [1]. FX Leaders reported that the Treasury plan would buy back at least $4 billion of long-duration bonds between September 9 and November 4, up from the previous $2 billion cap [6]. The Block also reported that analysts saw the Treasury’s expanded buyback program as a liquidity catalyst, though it noted that MEXC Research considered the market reaction premature [4].

That disagreement is healthy. Crypto often front-runs liquidity narratives before the liquidity itself appears. If bond buybacks reduce stress at the long end of the curve and the dollar weakens, risk assets can benefit. If the move proves too small to change broader financial conditions, crypto may have already priced in more easing than it will receive. The rally therefore sits at the intersection of actual flows, expected liquidity and reflexive positioning.

What would confirm “the beginning”

The bullish case now needs confirmation in three places. First, ETF inflows must remain positive after the initial breakout. Second, spot volume should keep supporting prices rather than leaving derivatives to carry the advance. Third, leadership must stay broad enough to include Bitcoin, Ethereum and selected altcoins without degenerating into indiscriminate speculation.

The warning signs are equally clear. A drop back below key breakout levels, falling ETF demand, rising funding rates or a sudden reversal in XRP and other high-beta tokens would suggest the move was too leveraged. The strongest version of the bull case is not that prices rise every day. It is that pullbacks are absorbed by real demand.

For now, the evidence is stronger than a simple squeeze narrative. Bitcoin produced a record dollar week, Ether absorbed capital at a high rate relative to its ETF base, and XRP showed that altcoin risk appetite had returned [2][3][5]. Gillen’s “beginning, not the end” call may prove too optimistic if macro liquidity disappoints, but it captures the central change in market psychology: crypto investors are no longer asking whether the rally can start. They are asking whether this was the first leg of a much larger one [1].

Sources from the last 72 hours

1. [1]Bitcoin records largest weekly dollar gain in history; Strive CEO predicts 'strongest' cycle everAug 24, 2026, 3:52 AM UTC
2. [2]Bitcoin, Ether ETFs Pull In $2.6B in Strongest Week Since OctoberAug 24, 2026, 4:33 PM UTC
3. [3]XRP leads broad altcoin rally as bitcoin's biggest weekly gain in two years lifts cryptoAug 21, 2026, 5:24 PM UTC
4. [4]24 Hour Crypto Recap: Here’s What Happened in the MarketAug 24, 2026, 12:00 AM UTC
5. [5]The Bitcoin, Ethereum, XRP Record Week Was Just 'The Beginning,' Prominent Analyst SaysAug 24, 2026, 12:07 PM UTC
6. [6]XRP Eyes $2 as Liquidations, ETF Inflows and Treasury Move Revive Ripple Bullish UptrendAug 24, 2026, 12:00 AM UTC

AI-generated article based on recent web research, then preserved as a dated editorial snapshot.