Bitcoin surged past $79,000 this week, posting a 20% to 30% gain in just a few days. The rally peaked near $79,500 around August 21-22, representing roughly a 22% to 24% increase from recent lows established between $64,000 and $65,000. The primary driver of this upward movement was a historic short squeeze, with estimated liquidations exceeding $2.7 billion. Bitcoin ETF inflows also supported the momentum, adding organic demand alongside the mechanical buying pressure from forced liquidations. US Treasury policy provided additional tailwinds, as the expansion of the long-term bond buyback program pushed yields lower and benefited risk assets.
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