Bitcoin Breakout: Liquidity Response and ETF Demand Fuel 24% Surge

Bitcoin (BTC) broke out of its multi-month range last week, closing near $77,700 and marking a nearly 24% rise after reaching $71,000 on August 20.

The rally came despite Bitcoin's historically weak performance in August, according to the Bitfinex Alpha report, which noted that the month typically delivers negative median returns.

A key catalyst for the breakout was the U.S. Treasury's expansion of its bond buyback program, which triggered a liquidity response and led to the liquidation of $3 billion in Bitcoin short positions over two days - the largest short-side wipeout on record.

Meanwhile, spot demand provided another source of support, with U.S. Bitcoin exchange-traded funds (ETFs) posting about $1.92 billion in weekly net inflows, their strongest total since October 2025.