Bitcoin experienced high volatility over a recent 24-hour period, rising more than 25% for the week with a wick nearly reaching the $80,000 level before pulling back by over 6%. This movement marked a flash crash that liquidated $108 billion in shorts within six minutes and $500 million in longs within 30 minutes.
Despite the sudden pullback, Bitcoin managed to hold its weekly gains and remained up more than 21%, distinguishing the drop as a correction within a healthy weekly uptrend rather than a sustained crash. The broader market also saw significant movement, with over $5 billion in shorts squeezed during August, representing the strongest liquidation cascade since October 10.
Institutional demand remained a supporting factor. Data from SoSoValue revealed that Bitcoin ETFs recorded $507 million in inflows on August 19, marking their highest daily inflow day of the month and the largest since the first week of May. BlackRock's IBIT led the demand by attracting $285 million, accounting for 56% of the daily total. IBIT has accumulated $1.2 billion in inflows for the month so far.
With technical resilience, strong institutional positioning through ETF inflows, and heavy market deleveraging, analysts continue to monitor how these combined factors impact Bitcoin's trajectory following the recent volatility.
