US-listed Bitcoin spot exchange-traded funds (ETFs) posted their largest weekly net inflow in 10 months, drawing approximately $1.92 billion last week, signaling renewed investor interest in crypto assets after a period of outflows [1, 2]. Bitcoin’s price surged roughly 23-24% over the same period, reaching highs near $79,000 to $80,000, boosting market optimism [1, 3, 4].
The rally centered around the US Treasury’s August 19 announcement to at least double the scale of long-term government bond buybacks, with purchases increasing from $20 billion to at least $40 billion, aiming to improve liquidity in long-duration debt markets [3, 5, 6]. US Treasury Secretary Scott Bessent highlighted the move as a step to stabilize the bond market’s long end, which industry experts say indirectly supports Bitcoin’s fixed supply value proposition [6]. Caitlin Long, CEO of Custodia Bank, remarked, "The US Treasury’s current policy signals a desire to stabilize the long end of the bond market … this could support Bitcoin due to its fixed supply nature" [6].
Last week also saw a massive short squeeze in crypto positions, forcing liquidation of roughly $20 billion to $30 billion in short crypto contracts between August 19-21, intensifying the price rally [3, 5]. Daily Bitcoin ETF inflows occurred every trading day last week, adding to the impression of broad-based investor demand returning to the market. Gracie Lin, CEO of OKX SG, said, "We saw net inflows on every trading day last week, which suggests renewed investor interest in bitcoin. The question now is whether that momentum will hold" [1].
Ethereum also benefited from strong fund flows, surging over 27% to above $2,400 [5]. Meanwhile, Coinbase’s stock rose 11% on August 19 amid regulatory shifts and the White House crypto summit, reflecting growing institutional confidence in crypto regulation [7, 8].
Despite last week’s gains, Bitcoin ETFs have experienced a net outflow year-to-date of about $2.9 billion, underlining ongoing mixed sentiment earlier this year [1]. Bitcoin’s current price remains roughly 19% below its January 2026 peak near $95,000 and about 40% below its all-time high from October 2025 near $126,000 [3]. Analysts caution that the recent rally faces risks including price crashes, competition from stablecoins, and regulatory uncertainty. Rupert Carlyon, a crypto analyst, warned, "If enough holders decide to sell, Bitcoin’s value could go to zero, though institutional support makes full collapse unlikely" [9].
Some observers also note a “liquidity illusion” amid large inflows, as whales reportedly offloaded coins near $77,000-$78,000 [10]. Technical levels such as the 50-week moving average near $82,000 are viewed as critical to confirming a sustained bull market [10]. Traders are advised against chasing prices above the $78,000-$80,000 range and to consider scaling in on dips near $69,000-$71,000 [10].
Bitcoin’s price was near $79,000 on August 24, but analysts say sustained gains depend on continued strong spot demand beyond forced liquidations. Lacie Zhang of Bitget Wallet stated, "For Bitcoin to sustainably break 80k and hold, continued strong spot demand beyond forced liquidations is needed" [4].
Next week, market participants will watch for whether inflows persist and if Bitcoin can hold above technical thresholds amid evolving macro conditions.
