Bitcoin surged 7.89% over a 24-hour period to trade at $78,589.05, leading broader cryptocurrency market gains and pushing its weekly advance to nearly 20%. The move carried the asset above the $75,000 breakout level, supported by institutional spot buying, a macroeconomic liquidity signal from the US Treasury, and a major short squeeze.
Institutional Inflows and Treasury Catalyst
Renewed institutional demand provided the primary source of spot buying. US spot Bitcoin ETFs absorbed $606.29 million on August 20, marking their strongest daily intake since May 1 and extending a four-day inflow streak to approximately $1.61 billion. BlackRock’s IBIT accounted for $502.99 million of the daily total, with Fidelity’s FBTC adding $64.74 million alongside contributions from Bitwise, ARK, and Invesco.
The rally also coincided with a Treasury announcement to expand its maximum liquidity-support buyback program for long-dated bonds from $2 billion to at least $4 billion per operation, beginning September 9. Traders treated the decision as a liquidity signal, which initially lowered yields and weakened the dollar, creating favorable conditions for both Bitcoin and gold. During this macro-driven move, Bitcoin exhibited a 90% short-term correlation with gold as investors navigated inflation, fiscal stress, and currency debasement concerns.
Short Squeeze and Technical Levels
The spot-led advance was significantly amplified by a crypto short squeeze. Coinglass data indicated that nearly $709 million in Bitcoin short positions were liquidated over a 24-hour period, compared to approximately $139 million in longs. Across the wider crypto market, short liquidations totaled about $1.13 billion.
The forced closures accelerated price gains as traders bought back Bitcoin, pushing the asset past $75,000 and briefly above $79,000. The 14-day Relative Strength Index (RSI) reached 80.43, pointing to strong upward momentum alongside an overextended market. Technical support now centers on the $75,000 to $76,000 zone. Maintaining this range preserves the breakout structure toward the $80,256 Fibonacci extension, while a failure to hold could expose downside targets at $70,740 and the 38.2% retracement level near $69,113.
Market Sentiment and Regulatory Context
Following the four-day rebound, the crypto Fear and Greed Index jumped from 34 to 72, and Bitcoin trimmed its 2026 loss to 11.4%. Meanwhile, prediction markets such as Kalshi adjusted expectations, placing the price near $77,000 for year-end. Regulatory developments also remained in focus as President Donald Trump urged Congress to advance the CLARITY Act, and CFTC Chairman Michael Selig directed staff to prepare new market rules. Upcoming Treasury auctions scheduled for August 25 through August 27 will serve as the next test for government debt demand and broader market stability.
