Bitcoin Logs Best Week Since 2023 as ETF Inflows Hit $1.92 Billion

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Bitcoin surged more than 23% last week to trade near $79,000, its best weekly performance since the 2023 banking crisis, as spot Bitcoin ETFs absorbed $1.92 billion in net inflows, the largest weekly haul since October 2025. Ethereum climbed about 30% to cross $2,500 as Ether funds took in $697 million. The rally was driven by a U.S. Treasury decision to double long-term bond buybacks, which weakened the dollar and lowered yields, along with a White House push on crypto regulation. A massive short squeeze liquidated roughly $4 billion in bearish positions over two days, forcing traders to buy back in and accelerating the advance. BlackRock’s IBIT led inflows with a single-day record of $606.3 million. Strategy made no Bitcoin purchases during the week but moved back into profit on its 840,447 BTC position. Analysts cautioned that consolidation may follow the rapid rise, with $80,000 as the next key test.

Key Elements

Bitcoin surged more than 23% last week, its strongest weekly performance since the 2023 banking crisis, as a confluence of Washington policy shifts, a massive short squeeze, and heavy institutional buying pushed the largest cryptocurrency toward the $80,000 mark.

The rally carried Bitcoin from roughly $62,000 to an intraday high near $79,500 before it settled around $77,876, according to market data. U.S. spot Bitcoin exchange-traded funds absorbed $1.92 billion in net inflows for the week ending August 21, the biggest weekly haul since October 2025. Ethereum rode the same wave, climbing about 30% to cross $2,500 as spot Ether ETFs took in $697 million.

The move snapped a months-long summer lull that had left Bitcoin trading well below its October 2025 record of $126,080. The rebound was driven by three overlapping forces: a Treasury decision that weakened the dollar, a regulatory push from the White House, and a derivatives market unwind that forced bearish traders to buy back in at a loss.

The Macro Spark

Treasury Secretary Scott Bessent announced plans to double the government’s long-term bond buyback program to $4 billion per operation, up from $2 billion. The move pushed the 30-year Treasury yield down from 5.34% to roughly 5.19% and sent the dollar index lower, creating conditions that favored risk assets.

President Donald Trump added to the momentum by meeting crypto executives at the White House and pressing Congress on the Clarity Act, legislation designed to settle which regulator oversees which crypto assets. Analysts pointed to a more supportive regulatory environment as another factor behind the recovery.

But the most violent force came from derivatives markets. As Bitcoin broke through resistance at $70,000 and then $75,000, traders who had bet on declines were forced to close their positions at a loss. A short squeeze wiped out roughly $3 billion in bearish positions within 24 hours, with another $1 billion liquidated the following day. Each forced purchase pushed prices higher, triggering the next round of liquidations.

“The Treasury move was a pressure release,” said Shawn Young, though he cautioned that the rally still faces challenges. Jeff Ko called the buyback a supportive policy signal but stressed that it does not represent quantitative easing.

Institutional Money Leads the Charge

BlackRock’s iShares Bitcoin Trust (IBIT) captured the largest share of new capital. Thursday’s session alone brought in $606.3 million, the biggest single-day intake for Bitcoin funds in more than three months, with over $500 million flowing into IBIT. Friday added another $307 million, extending the inflow streak to five consecutive positive sessions.

The distinction between new money and price appreciation matters. Total assets under management across Bitcoin and Ethereum ETFs jumped roughly $23.3 billion for the week. But only $2.6 billion came from fresh investor cash. The remaining $20.7 billion reflected the rising value of coins already sitting in those funds. Bitcoin ETF assets climbed 25.4% to $96.1 billion, while Ethereum fund assets jumped 35.9% to $14.3 billion.

XRP funds also drew fresh demand, pulling in $39.78 million and setting a record weekly volume of $271.74 million.

Note: Figures cover the week ending August 21, 2025.

Strategy Sits Out the Rally

Strategy, the largest corporate holder of Bitcoin, made no purchases or sales between August 17 and August 23, leaving its treasury unchanged at 840,447 BTC. The company’s aggregate cost stands at $63.36 billion, with an average acquisition price of $75,385 per coin.

The rebound above that average cost has pushed the position back into profit. At $79,200, the holding is worth roughly $66.6 billion, about $3.2 billion above its aggregate acquisition cost.

Instead of buying Bitcoin, Strategy sold 18.26 million MSTR shares for $2.01 billion in net proceeds. Of that amount, $300 million increased its designated USD Reserve to $5.10 billion, while $1.59 billion established a separate cash pool that can be deployed for Bitcoin purchases, dividends, debt payments, or securities repurchases. Bernstein expects the company could resume Bitcoin purchases later.

The altcoin market broadened alongside the majors. Solana briefly broke $100 for the first time since February before trading near $96. Zcash retained much of its recent 30% surge, while HYPE remained elevated following a run to record highs. Bitcoin still controls most of the market’s liquidity, but ETH, SOL, and other large-cap tokens are now participating with substantially stronger spot volumes than before the breakout.

Both Bitcoin and Ethereum crossed above their 200-day moving averages, a boundary chart analysts watch to confirm long-term health. Short-term moving averages are now curling upward toward a potential golden cross, a classic technical signal that often points to sustained upward momentum.

Jayke Kyndrede from QCP Group noted that while the market looks supported, some “consolidation or retracement would be unsurprising” following such a rapid move. With Bitcoin still trading well below its record high, a brief cooling period gives prices room to settle.

The rally has not erased the damage from earlier in 2026. Bitcoin ETFs remain in net outflows for the year, and Ethereum funds are still negative, though the combined year-to-date deficit narrowed from $5.7 billion to $3.1 billion.

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Source: finance.biggo.com