Bitcoin Price Surges by Record Amount Amid Short Squeeze and ETF Inflows
Bitcoin's price surged by a record $14,775 in one week, pushing it from $62,818 to $77,593. This represents a 23.5% increase, marking its strongest percentage gain since March 2023.
The rally also triggered a major short squeeze, with around $2.7 billion in crypto short positions liquidated as traders were forced to close their bearish bets against Bitcoin. This added buying pressure and helped fuel the fastest bullish shift in about a year.
US spot Bitcoin ETF inflows reached their highest weekly level since October 2025, according to Galaxy Research, with August tracking towards its largest monthly net inflow since Bitcoin's previous record high. However, ETF investors still hold positions below their average purchase price, with Galaxy estimating the cost basis at $84,029 and current prices around $78,955.
The Treasury's decision to double long-bond buyback operations and President Donald Trump's call for the CLARITY Act to create federal rules for digital assets may have contributed to the rally, as investors seek clarity on regulatory frameworks.