Bitcoin Eyes $80K as Ethereum and XRP Extend Crypto Market Rally

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MentionedBTC$79,057.00+2.11%ETH$2,477.60+1.03%XRP$1.50-0.75%

The crypto market is holding onto its powerful recovery on August 24, with Bitcoin (BTC) trading above $77,000 after briefly approaching $80,000 earlier in the rally.

Ethereum (ETH) has continued moving higher toward $2,500, while XRP remains one of the strongest large-cap performers after a sharp three-day surge pushed the token to a seven-month high.

However, the market has also started showing signs of consolidation.

After the historic short squeeze that helped fuel last week’s rally, the weekend pullback triggered a fresh wave of liquidations among leveraged long traders. The result is a market that remains strongly higher than it was just days ago but is now testing whether the rally can continue without excessive leverage.

Why Is the Crypto Market Up Today?

The broader crypto market continues to benefit from the momentum created by last week’s major reversal.

Bitcoin has gained sharply from the levels seen before the August 20 breakout, while Ethereum and several major altcoins have also extended their recoveries. The move has been supported by improving expectations around liquidity, renewed institutional demand through ETFs and growing optimism surrounding U.S. crypto regulation.

The rally initially accelerated after U.S. Treasury Secretary Scott Bessent’s bond-buyback plans were interpreted as supportive for broader financial liquidity and risk assets.

That initial move then developed into a major short squeeze.

More than $4 billion in crypto short positions were reportedly liquidated during the broader rally that pushed Bitcoin toward a three-month high near $79,500. Spot Bitcoin ETFs also recorded approximately $1.6 billion in weekly net inflows, signaling a renewed wave of institutional demand.

This means the current market move is no longer just a one-day reaction.

Bitcoin has now recorded a powerful multi-day advance, and ETF demand will be one of the most important indicators to watch if the recovery is going to develop into a more sustained rally.

The market has also received support from improving regulatory sentiment in the United States. The White House’s recent crypto discussions and continued focus on the CLARITY Act have increased expectations that the industry could receive a clearer regulatory framework.

Related: This follows the explosive move covered in our Crypto Market Update August 20: Bitcoin Breaks $72K as HYPE and PEPE Soar, when Bitcoin broke above $72,000 and a historic wave of short liquidations pushed the broader market sharply higher.

Crypto Market Data August 24

Crypto Leverage Cools After Weekend Liquidations

The market’s rapid advance created a significant buildup of leveraged positions.

However, the weekend brought a reminder that the rally remains highly sensitive to derivatives activity.

A relatively modest Bitcoin pullback triggered approximately $340 million in crypto liquidations over 24 hours, with long traders accounting for the majority of the losses.

More than $250 million in leveraged long positions were reportedly liquidated as traders who entered after the sharp rally were caught by the temporary reversal.

The move is notable because it represents the opposite side of the liquidation event that powered the market higher earlier in the week.

On August 20, short sellers were forced to buy back positions as Bitcoin and Ethereum surged. Over the weekend, highly leveraged buyers were instead forced out as the market cooled.

Bitcoin open interest currently remains elevated at around $55 billion, while futures volumes are also significantly higher than they were before the rally.

This suggests that derivatives traders are still highly active, which could continue creating sharp moves in either direction.

Bitcoin Holds Above $77K After Testing $79K

Bitcoin remains the center of attention after reaching a three-month high near $79,500 during the latest rally.

The cryptocurrency has since pulled back slightly but continues to hold above the important $77,000 area.

The current price action suggests that Bitcoin is attempting to consolidate after one of its strongest multi-day rallies of the year.

The first major resistance remains around the 79,000 – 80,000 area.

A sustained move above $80,000 could give Bitcoin another psychological target around $85,000.

However, traders should also watch the downside.

The $77,000 region is becoming an important short-term support level. A loss of that area could increase the possibility of a deeper correction toward the mid $70,000 range.

The key difference compared with the August 20 rally is that Bitcoin is no longer trying to break out from $70,000.

The market is now testing whether buyers can defend the gains created by the short squeeze.

ETF demand could play an important role here. Spot Bitcoin ETFs attracted approximately $1.61 billion in net inflows over the past week, showing that institutional investors returned as Bitcoin’s price recovered.

Ethereum Pushes Toward $2,500 as Momentum Builds

Ethereum has also continued participating in the broader recovery.

ETH traded near $2,500 on August 24 after gaining roughly 3% over the previous 24 hours.

The move is particularly important because Ethereum has shown strong momentum throughout the latest market recovery rather than simply following Bitcoin.

Ethereum’s performance is also being supported by growing institutional interest.

BitMine Immersion Technologies announced on August 24 that its ETH holdings had reached approximately 5.85 million ETH, representing around 4.8% of Ethereum’s total supply.

The company said it was approaching its long-term goal of accumulating 5% of the ETH supply.

The announcement highlights the growing role of large institutional and corporate holders in the Ethereum ecosystem.

For ETH, the immediate question is whether buyers can establish $2,500 as a support level.

A sustained breakout above this area could open the door for a move toward the next major resistance zones. However, a broader Bitcoin correction could still slow Ethereum’s momentum after its rapid recovery.

XRP ETF Demand Reaches $1.55 Billion as Price Holds Near $1.50

XRP remains another major story in the market.

The token recently surged approximately 70% in less than three days, reaching around $1.70 before encountering selling pressure and pulling back.

Despite that correction, XRP continues to trade near $1.50, well above the $1 support zone that defined much of its earlier price action.

The rally has coincided with a major increase in institutional demand.

Spot XRP ETFs recorded $39.78 million in weekly net inflows, their strongest performance since May. The latest inflows pushed cumulative XRP ETF net inflows to a new record of approximately $1.55 billion.

The combination of ETF demand and the sharp price rally has placed XRP among the strongest-performing large-cap cryptocurrencies during the latest market recovery.

Related: For a deeper breakdown of the ETF flows, institutional demand and XRP’s key resistance levels, read our latest analysis: XRP ETF Inflows Hit $1.55B as 70% Price Surge Revives Institutional Demand.

The important resistance zone remains around $1.65 – $1.70.

A successful breakout could confirm that XRP’s recovery still has momentum, while another rejection could keep the token trading within a broader consolidation range.

What Comes Next for the Crypto Market?

The crypto market has changed significantly since the beginning of last week.

Bitcoin has moved from the mid-$60,000 range toward $80,000, Ethereum has recovered toward $2,500 and XRP has produced one of the strongest large – cap rallies in the market.

But the weekend liquidations also show that the market remains heavily influenced by leverage.

The historic short squeeze helped start the rally. The next stage will likely depend more on whether spot demand and ETF inflows can continue supporting prices after the initial forced buying has faded.

For Bitcoin, the key area to watch is the $77,000 support and $80,000 resistance zone.

For Ethereum, traders will be watching whether ETH can establish itself above $2,500.

XRP, meanwhile, faces another important test near $1.65 – $1.70 as institutional ETF demand continues to increase.

The key question now is whether Bitcoin can break decisively above $80,000 and extend the recovery or whether the market needs a longer period of consolidation after one of its fastest rallies of the year.

Source: www.altcoinbuzz.io