Bitcoin Jumps $10,000 in a Week as Shorts Lose $3 Billion

Bitcoin held above US$77,000 after a strong rally, driven by institutional buying and favorable regulatory signals. It reached nearly US$79,500 before a slight pullback. ETF inflows surged, with US$2.6 billion in combined net inflows for bitcoin and ether funds. Other cryptocurrencies like Ether, Solana, and Zcash also saw gains. The rally was supported by improved liquidity conditions and regulatory developments.

The SEC proposed Regulation Crypto Assets, allowing crypto projects to raise up to $75M/year without full securities registration. Ethereum (ETH) and Solana (SOL) could be indirectly affected. The proposal includes tiered exemptions and reduced regulatory burdens post-fundraising. Implementation is uncertain and subject to a 60-day comment period.

Bitcoin and gold prices rose last week, driven by Treasury bond buybacks and crypto-friendly legislative discussions. Bitcoin climbed above $77,000, while gold reached $4,661. The Treasury's actions aimed to stabilize bond markets but raised inflation concerns. President Trump's support for crypto legislation also boosted bitcoin's price, leading to significant liquidation of bearish positions.

Bitcoin and Ethereum ETFs saw $2.6B inflows in the week ending Aug. 21, 2026, their strongest weekly inflow of the year. Bitcoin neared $80,000, while Ethereum topped $2,500, driven by macroeconomic and policy factors. ETF inflows coincided with a crypto rally, with Bitcoin up 25% weekly. Investors will watch if inflows persist beyond short-term liquidations.

Bitcoin (BTC) surged by $15k to nearly $80,000 after the U.S. Treasury announced a doubling of long-dated bond buybacks to $4 billion, triggering $3-4 billion in short liquidations. Analysts attribute the rally to lower yields, a weaker dollar, and strong inflows into spot Bitcoin ETFs, particularly BlackRock's IBIT. However, momentum indicators suggest overbought conditions and potential profit-taking risks.

Bitcoin fell below $76,000, causing $547 million in leveraged position liquidations, mostly long bets. Analysts cited excessive bullish leverage and technical factors. Despite this, Bitcoin ETFs saw $307.45 million in inflows on August 21, with weekly inflows totaling $1.92 billion. Ethereum ETFs also saw significant inflows. Macro events and DeFi exploits are additional market factors.