This Week in Crypto: Bitcoin Bulls Return as Strategy Buys Again
This week in crypto, Bitcoin continued its sharp recovery, climbing back towards levels last seen in May as confidence returned to digital asset markets. The rebound has also brought institutional buyers back into focus, with Michael Saylor's Strategy resuming its Bitcoin accumulation after a two-month pause and Bitmine continuing its aggressive Ethereum strategy. In Australia, the countdown to a major licensing deadline is underway, while another DeFi exploit has put blockchain security back in the spotlight.
Bitcoin climbed above AU$113,000 (US$81,000) this week, reaching its highest level since mid-May and extending its recovery from the June lows. The move follows several weeks of improving sentiment across crypto and broader risk markets, supported by renewed institutional demand and expectations that monetary conditions could become more favourable.
The latest push higher accelerated as expectations around US interest rates shifted, while traders positioned for further strength across risk assets. Short liquidations also added momentum as Bitcoin moved through key price levels, forcing bearish positions out of the market. While Bitcoin remains well below its all-time high, the return towards May's levels represents a significant shift after months of weaker price action. Whether the recovery can develop into a more sustained move will likely depend on continued institutional demand and the broader macroeconomic environment.
Adding to the renewed optimism, Strategy returned to the market with its first major Bitcoin purchase since June. The company acquired 4,603 BTC for approximately US$370 million, taking its total holdings to more than 845,000 Bitcoin. The purchase was funded primarily through the sale of Strategy shares and reinforces the company's position as the world's largest corporate Bitcoin holder.
The return to buying is particularly notable after Strategy briefly reduced its Bitcoin position earlier in the year while strengthening its balance sheet and managing obligations associated with its preferred stock. Its latest acquisition suggests the company remains committed to its long-term Bitcoin strategy despite the volatility experienced over recent months.
Ethereum is attracting similar attention. Bitmine Immersion Technologies extended its long-running accumulation strategy by purchasing another 53,501 ETH last week. The company now controls approximately 4.9% of Ethereum's circulating supply, putting it close to its stated target of owning 5%.
Bitmine has continued buying throughout the market downturn despite carrying substantial unrealised losses, demonstrating the scale of its longer-term conviction in Ethereum. Its strategy also highlights how the corporate crypto treasury model is expanding beyond Bitcoin, with Ethereum increasingly being considered by public companies and institutional investors as a strategic digital asset. With crypto outperforming many traditional assets during the recent recovery, Bitmine believes institutions could increasingly look to rebuild their digital asset exposure.
Closer to home, Australian crypto businesses are approaching an important regulatory deadline. ASIC has warned firms relying on its temporary no-action position that they have until 30 September to apply for, or vary, an Australian Financial Services licence where required. More than 45 digital asset-related licence applications have now been recorded since ASIC updated its guidance last October.
From 1 October, businesses that require authorisation but have not satisfied the conditions of the temporary relief could be operating in breach of financial services law and face significant penalties. The deadline represents an important step in Australia's transition towards a more formally regulated digital asset sector, with ASIC increasingly bringing crypto businesses within existing financial services requirements.
Importantly, the September deadline is separate from Australia's broader Digital Asset Framework, which is scheduled to take effect in April 2027. Together, the changes point towards a significant transformation of Australia's crypto regulatory landscape, as the industry moves from temporary arrangements towards more established licensing and oversight.
Security was also back in focus after the Cronos blockchain was halted following an exploit involving decentralised lending protocol Tectonic. Researchers estimate approximately US$75 million in assets were affected, although the projects involved had not confirmed the final loss at the time of reporting.
The suspected attack involved manipulating the price of Tectonic's TONIC token in a thin market before using the inflated value as collateral to borrow other assets. Most of the affected funds reportedly remained on Cronos after the network was halted, while Crypto.com said its exchange and app were unaffected. The incident is another reminder of the risks associated with low-liquidity assets and DeFi lending protocols, where manipulated collateral values can quickly create losses elsewhere in the system.
After a difficult period for digital assets, the tone across the market has clearly improved. Bitcoin is again testing important levels, major corporate holders are accumulating and institutional interest in Ethereum remains strong. At the same time, Australia's regulatory transition and another major DeFi security incident show that the industry's recovery is unfolding alongside continued efforts to strengthen its underlying infrastructure. Whether Bitcoin can build on its recent momentum will now be one of the key stories to watch heading further into September.
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