Bitcoin has climbed above the $75,000 mark, with Coinbase CEO Brian Armstrong signaling the likely start of a new digital asset bull market and forecasting substantial long-term gains.
Market surge fueled by ETF inflows and liquidations
On August 20, Bitcoin reached an intraday high of nearly $72,868 before stabilizing close to $72,660, rebounding from below $65,000 seen earlier in the week. This dramatic price increase followed a wave of liquidations, with CoinGlass data confirming that over $1 billion in short positions were liquidated within one hour as Bitcoin broke key resistance zones between $65,000 and $67,000. The rush to cover leveraged shorts accelerated the upward move.
Investor appetite for US spot Bitcoin exchange-traded funds (ETFs) also intensified. Analytical firm SoSoValue reported $517 million in daily net inflows to American Bitcoin spot ETFs on August 19, marking their strongest performance since May. This figure surpassed the entire net inflow for July, which stood at about $172 million.
Armstrong pointed to a convergence of factors supporting market optimism: the end of a prolonged bear market, a surge in investor demand through ETFs, and the expected year-end strength in Bitcoin price action.
The Coinbase CEO also cited the April 2024 Bitcoin halving as a crucial catalyst, which cut mining rewards from 6.25 to 3.125 Bitcoin per block. Historically, such events have preceded substantial price rallies, although each market cycle has played out amid distinct market forces.
Mini dictionary: Bitcoin halving is a programmed event occurring roughly every four years, reducing the reward for mining new blocks by half and limiting new Bitcoin supply.
| Date/Event | BTC Price | Mining Reward per Block |
|---|---|---|
| April 2024 Halving | $72,868 (peak August 20) | 3.125 BTC |
| Pre-halving (early 2024) | Below $65,000 | 6.25 BTC |
Regulatory developments and CLARITY Act progress
The Digital Asset Market Clarity Act, which aims to create clear regulatory guidelines for cryptocurrencies, is scheduled for a procedural vote in the US Senate on September 15. Majority Leader John Thune introduced a motion on August 8 to bring the act up for consideration. Armstrong expressed confidence that the bill could secure the necessary 60 votes, citing bipartisan support and noting that Democrats and Republicans have achieved around 90% alignment on key terms. However, this vote is a procedural step and would enable formal debate, rather than directly enacting the legislation.
The House approved its version in July 2025 with a 294 to 134 majority, while the Senate Banking Committee advanced its section by a 15 to 9 margin in May 2026. With Republicans holding 53 seats in the 100-member Senate, Democratic or independent support remains essential for passage.
Key outstanding issues include stablecoin yield programs, anti-money-laundering standards, regulations for decentralized finance, and the jurisdictional boundaries between the SEC and the Commodity Futures Trading Commission (CFTC).
Coinbase transforms revenue model as Armstrong eyes ‘AI-fi’
Coinbase, a leading US cryptocurrency exchange and wallet provider, has diversified its revenue beyond Bitcoin spot trading. Bitcoin currently generates about 12% of Coinbase’s total revenue, a sharp decline from more than half in previous years. Subscription and services revenue reached $555 million, compared to only $6 million per quarter in 2020. Shares of Coinbase rose about 7% on August 20, closing near $171.34.
Armstrong highlighted “agentic finance,” sometimes referred to as “AI-fi,” as an emerging area where artificial intelligence agents autonomously handle financial transactions, suggesting future expansion opportunities for the company.
Mini dictionary: Agentic finance or “AI-fi” refers to financial systems where artificial intelligence programs autonomously make and execute financial decisions on behalf of users.
Armstrong projected that Bitcoin could hit values between $300,000 and $400,000 by the year 2030, driven by technological innovation, broader adoption, and potential regulatory clarity.
