Bitcoin Consolidates Near $78,000 as ETF Inflows Offset Retail Selling
Bitcoin is consolidating near $78,000 after retreating from its three-month peak of $81,500. The cryptocurrency's rally has been driven by a combination of forced short covering, record inflows into US spot exchange-traded funds, and a broad-based accumulation trend visible across on-chain wallet data.
On August 19, the price surge produced the largest single-day liquidation event since 2019, with short positions accounting for most of the forced closures. The actual liquidation total was likely higher because it doesn't include Hyperliquid. US spot Bitcoin ETFs pulled in $2.23 billion of net inflows over a seven-day stretch, marking the strongest weekly intake of the year.
A sharp divergence exists between investor classes, with entities holding more than 100,000 BTC adding 59,100 BTC since June 30 while retail wallets recorded an Accumulation Trend Score of -0.982, indicating persistent selling by smaller investors.