{"id":31839,"date":"2026-08-25T11:37:21","date_gmt":"2026-08-25T10:37:21","guid":{"rendered":"https:\/\/investx.fr\/en\/2026\/08\/25\/bitcoin-80000-etf-inflows-short-squeeze-august-rally\/"},"modified":"2026-08-25T11:37:27","modified_gmt":"2026-08-25T10:37:27","slug":"bitcoin-80000-etf-inflows-short-squeeze-august-rally","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/crypto-news\/bitcoin-80000-etf-inflows-short-squeeze-august-rally\/","title":{"rendered":"Bitcoin Surges Past $80,000: ETF Inflows and Short Squeeze Fuel August Rally"},"content":{"rendered":"\n

Bitcoin<\/strong> has just broken through the $80,000<\/strong> mark for the first time in over three months, pushing its weekly gain to +16%<\/strong>. Behind this sharp move, two distinct mechanisms are combining to amplify the rally.<\/p>\n\n\n\n

On one side, U.S. spot Bitcoin ETFs<\/strong> are recording their best inflows since May. On the other, a wave of short position liquidations<\/strong> is mechanically fueling buying pressure. All of this is unfolding against a backdrop of a weakening dollar<\/strong> and renewed appetite for scarce assets.<\/p>\n\n\n\n

Here is what the data reveals about the real structure of this rally.<\/p>\n\n\n\n

Bitcoin ETFs: Institutional Flows Make a Powerful Comeback<\/h2>\n\n\n\n

On August 19, 2026<\/strong>, U.S. spot Bitcoin ETFs<\/strong> recorded $517 million in net inflows in a single day<\/strong> \u2014 their strongest performance since May. Over the first two weeks of August, these products collectively attracted nearly $1 billion<\/strong>, signaling a clear return of institutional appetite for regulated BTC<\/strong> exposure.<\/p>\n\n\n\n

This renewed interest is playing out within a favorable macro environment. The U.S. Treasury<\/strong> doubled its long-term bond buyback program from $2 billion to $4 billion<\/strong>. While this does not constitute a direct expansion of the money supply, it exerts downward pressure on long-term yields and is being read by markets as an easing signal. The ICE U.S. Dollar Index<\/strong> fell 0.8%<\/strong> in the wake of the announcement, reigniting the debasement trade<\/strong> \u2014 the strategy of positioning in scarce assets against a structurally weakening dollar.<\/p>\n\n\n\n

Bitcoin<\/strong><\/a>, with its hard cap of 21 million units<\/strong>, fits naturally into this narrative. Gold<\/strong> also reacted, breaking above its 200-day moving average around $4,518 per ounce<\/strong> over the same period. Both assets are playing a similar role as stores of value against monetary erosion.<\/p>\n\n\n\n

\"Bitcoin<\/figure>\n\n\n\n

Massive Short Squeeze: $1.5 Billion Liquidated in Minutes<\/h2>\n\n\n\n

The other driver of this rally is mechanical and brutal: the short squeeze. As Bitcoin’s<\/strong> price climbed, approximately $1.5 billion in short positions<\/strong> were liquidated, including $700 million within a single minute<\/strong>. This type of event creates a self-reinforcing loop: short traders forced to buy back their positions generate the very buying pressure that pushes prices even higher.<\/p>\n\n\n\n

BTC<\/strong> hit a peak of $81,200<\/strong> before stabilizing around $80,300<\/strong>. The combination of ETF<\/strong> inflows and short liquidations<\/a> explains both the magnitude and the speed of the move \u2014 a breakout that would have been far more gradual without this dual catalyst.<\/p>\n\n\n\n

Bond Yields Remain the Key Risk to Watch<\/h2>\n\n\n\n

Despite the euphoria, bond markets are sending contradictory signals. While the Treasury<\/strong> announcement initially triggered a pullback in yields, the reaction quickly reversed. The U.S. 10-year yield<\/strong> climbed back to 4.737%<\/strong> and the 30-year to 5.276%<\/strong>, according to Dow Jones<\/strong> data cited by MarketWatch<\/strong> \u2014 nearly erasing the initial move entirely.<\/p>\n\n\n\n

Ian Lyngen<\/strong>, Head of U.S. Rates Strategy at BMO<\/strong>, notes that concerns around de-dollarization<\/strong>, U.S. fiscal credibility, and the term premium remain deep structural factors. These tensions in long-term yields represent the primary risk to the continuation of the Bitcoin rally<\/a>: if yields keep rising, pressure on risk assets could return, even in the presence of solid ETF<\/strong> inflows.<\/p>\n\n\n\n

Markets are now watching September 9<\/strong>, the date on which the Treasury<\/strong> announced the effective launch of its expanded buyback operations on long-dated bonds. This deadline could prove to be a fresh catalyst \u2014 or a disappointment \u2014 for financial markets as a whole.<\/p>\n\n\n\n

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