Bitcoin Short Squeeze Fuels 23% Weekly Gain as Institutional Buying Picks Up
Bitcoin's recent surge has been fueled by a short squeeze and significant buying activity from institutional investors, according to K33. The cryptocurrency advanced 23% over the past week, its strongest weekly gain since the post-election rally in November 2024.
Average daily spot trading volume in Bitcoin climbed 188% week-over-week to $4.7 billion, while Bitcoin ETPs saw net inflows of 31,740 BTC, the largest such inflows since October 2025.
The short squeeze on August 19 wiped out $1.37 billion in bearish BTC positions, contributing to a rapid move back above key moving averages. This surge has lifted momentum clearly in favor of the bulls, with Bitcoin reclaiming all four moving averages - 200-week, 200-day, 100-day, and 50-day - in just four trading days.
K33 noted that similar technical conditions have historically produced constructive outcomes, including a high forward win rate for Bitcoin. The report also observed that the current market regime resembles earlier bear-market breakout phases seen in 2019 and 2023.