Bitcoin broke through the $80,000 threshold on Thursday, reaching an intraday peak of $80,808 per coin at 11 a.m. EDT. The leading cryptocurrency gained 3.5% over the preceding 24 hours, lifting its market capitalization to approximately $1.60 trillion.
The broader crypto market expanded to $2.7 trillion in total capitalization, with roughly nine of the top ten assets by market cap posting gains during morning trading. Bitcoin's trading volume reached $30.87 billion, with Binance, Coinbase, and Upbit as the most active exchanges.
Sentiment Shifts Sharply
The Crypto Fear and Greed Index climbed to 72, indicating "greed" sentiment after registering a "fear" score of 29 last month. Beyond bitcoin's gains, ethereum jumped 3.33%, binance coin rose 2.5%, XRP gained 6%, and solana advanced more than 12% in a single day.
Massive Liquidations Hit Leveraged Traders
The rally triggered $409.07 million in derivatives liquidations, with $280.05 million stemming from short positions. A total of 89,215 leveraged traders faced losses, according to Coinglass liquidation data.
Ethereum and bitcoin shorts absorbed the largest losses. Approximately $106 million in ETH shorts were liquidated alongside $78.88 million in BTC shorts. Binance recorded the largest single liquidation event, with an ETH/USDT position losing $12.4 million.
ETF Inflows and Market Drivers
U.S. spot bitcoin ETFs recorded their eighth consecutive inflow session on August 26, with $232 million in net creations. The rally has been attributed to both institutional participation through ETFs and broader market dynamics, though prediction market participants on platforms like Polymarket and Kalshi remain cautious about the pace of further gains.
