Bitcoin Surges to $79,293 on Short Squeeze and Record ETF Demand
Bitcoin's price surge in August has been driven by a combination of factors, including a massive short squeeze and record demand for Bitcoin ETFs.
According to data from CoinGlass, leveraged short positions worth $6.4 billion were liquidated since last Wednesday, following an earlier wave on August 21 when roughly $2.7 billion in bearish bets were forcibly closed out.
The catalyst for the cascade came from the US Treasury Department's announcement that it would significantly expand its buyback program for longer-dated securities, doubling the per-operation volume for ten-to-thirty-year paper from $2 billion to at least $4 billion.
US spot Bitcoin ETFs have attracted more than $3 billion in August inflows, with BlackRock's IBIT fund playing a central role, pulling in several hundred million dollars on individual days.
Despite the euphoria, Bitcoin remains 37% below its all-time high of $126,198.07 set in October 2021 and is still down 10% year-to-date.