Bitcoin Surge Fueled by Short Squeeze & Big ETF Buying

Key Moments

• Bitcoin advanced 23% over the past week, its strongest weekly gain since the post-election rally in November 2024, according to K33.
• Average daily spot trading volume in Bitcoin climbed 188% week-over-week to $4.7 billion, while Bitcoin ETPs saw net inflows of 31,740 BTC.
• A record short squeeze wiped out $1.37 billion in bearish BTC positions on August 19, contributing to a rapid move back above key moving averages.

Bitcoin Logs Best Weekly Performance Since November 2024

Bitcoin (BTC) has staged its strongest one-week rally since the November 2024 US presidential election, rising 23% over the past week as spot trading activity and institutional interest picked up notably, according to a Tuesday report from K33.

The move carried BTC from roughly $63,000 to above $80,000 by late Monday. K33 noted that, in contrast to the 2024 advance, the current upswing has been driven in large part by forced deleveraging and an exceptional short squeeze.

Spot Market Activity and ETP Inflows Accelerate

The rebound in prices coincided with a sharp revival in spot market activity. K33 reported that average daily Bitcoin spot volumes increased 188% on a week-over-week basis to $4.7 billion, the highest level since early June. This followed an extended consolidation phase characterized by falling volumes and subdued volatility.