On August 25, Bitcoin smashed through the $80,000 mark for the first time since mid-May, even hitting $81,000 at its peak. The latest leg up was powered by huge capital inflows into US spot Bitcoin ETFs. Over the last six trading sessions, these funds pulled in around $2.26 billion, boosting bullish sentiment across the market.

Record Short Squeeze and Liquidations Rock the Market

Bitcoin volatility went into overdrive after a massive short squeeze. On August 20, roughly $3 billion in positions were liquidated—about $2.7 billion of that was from shorts. That triggered a rapid price surge and drew even more investor interest into the action.

ETF Inflows Are Driving the Rally

Capital pouring into US spot Bitcoin ETFs has been a major catalyst for this rally. In just six trading sessions, these funds attracted about $2.26 billion, fueling demand for the OG crypto and reinforcing the strong uptrend.

Price Action and Market Outlook

According to CoinGecko, Bitcoin is up over 25% in the past week. At the time of writing, BTC is hovering near $80,000. The daily BTC/USDT chart on Binance shows a powerful move up, driven by a combo of short liquidations and heavy ETF inflows.