Bitcoin Breaks Out as ETF Demand Fueled Rally Amid Historically Weak August

Bitcoin (BTC) has broken out of its multi-month range and reached near $77,700 after a nearly 24% rise. The rally came despite August's historically weak performance for Bitcoin, which typically delivers negative median returns.

The U.S. Treasury's expansion of its bond buyback program triggered a liquidity response, leading to the liquidation of $3 billion in Bitcoin short positions over two days - the largest short-side wipeout on record. Fresh positions entered the market as futures open interest rose to $51 billion, with long liquidations remaining limited.

U.S. Bitcoin exchange-traded funds (ETFs) posted about $1.92 billion in weekly net inflows, their strongest weekly total since October 2025, lifting assets under management above $96 billion. Corporate activity remained subdued, however, as Strategy, the largest publicly traded corporate Bitcoin holder, reported no BTC purchases or sales.

On-chain activity presents a more cautious picture, with Bitcoin transfer volumes remaining close to eight-year lows. Short-term holders with cost bases near $64,500 and $73,500 have moved into profit, which could help turn previous resistance into support if the breakout holds.