Bitcoin Rebounds 26% on Short-Squeeze Support and ETF Inflows
Bitcoin (BTC) has seen a 26% rebound from its mid-August low after a short-liquidation event on August 19 accelerated the recovery. According to Glassnode, this move produced the largest one-day liquidation event since 2019.
The short squeeze cleared much of the liquidation liquidity around Bitcoin, with short positions accounting for most of the liquidations across major centralized exchanges. The actual total was likely higher because the dataset excludes Hyperliquid.
ETF demand and large holders have provided support to the rebound. US spot Bitcoin ETFs recorded $2.23 billion in net inflows over seven days, with no outflow days and their strongest weekly intake of 2026.
The custody group added 31,500 BTC during the squeeze week, a similar scale to weekly ETF creations. However, data does not show that the same coins moved directly into ETFs.