Bitcoin pushed out of a multi-month consolidation range last week and closed near $77,700, after rising almost 24% from an intrawweek low of $62,750. The move also carried the asset above $71,000 on Aug. 20. According to Bitfinex Alpha, the rally stood out because it ran against Bitcoin’s usual pattern of weaker August performance.
The report linked the advance to a mix of macro liquidity and derivatives positioning. It said the U.S. Treasury’s expanded bond buyback plan triggered a liquidity response that helped drive roughly $3 billion in Bitcoin short liquidations over two days, described as the largest short squeeze on record. At the same time, futures open interest climbed to $51 billion, a sign that new positions were entering the market rather than the move being driven only by closing shorts.
Spot demand added another layer of support. U.S. spot Bitcoin ETFs recorded about $1.92 billion in net inflows last week, their strongest weekly showing since October 2025, lifting assets under management to more than $96 billion. The report also noted that MicroStrategy, the largest public corporate holder of Bitcoin, has not bought or sold recently, while its holdings shifted from a paper loss of $9.5 billion to a paper profit of $4.7 billion.
Bitcoin broke above a multi-month consolidation range last week and closed near $77,700. The rally started from an intrawweek low of $62,750, gained nearly 24%, and moved past $71,000 on Aug. 20.
Bitfinex Alpha said the move was a clear departure from Bitcoin’s usual August pattern, a month that has historically been weak for the asset.
Liquidity impulse and short liquidations drove the move
The report identified the U.S. Treasury’s expanded bond buyback plan as the main catalyst. It said the policy move triggered a liquidity response and led to roughly $3 billion in Bitcoin short liquidations over two days, the largest short liquidation event on record.
At the same time, futures open interest rose to $51 billion, indicating that fresh positions were entering the market.
Spot ETF inflows added support
Spot demand also supported the advance. U.S. Bitcoin ETFs posted about $1.92 billion in net inflows last week, their strongest weekly performance since October 2025, pushing assets under management above $96 billion.
MicroStrategy swings back to an unrealized profit
The report also said MicroStrategy, the largest public company holder of Bitcoin, has not made any recent purchases or sales. Its Bitcoin position has moved from an unrealized loss of $9.5 billion to an unrealized profit of $4.7 billion.
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