The past week was a landmark one for the digital asset market. Bitcoin demonstrated unprecedented weekly growth in dollar terms, gaining $14,775 — a jump the cryptocurrency's history has never seen. By Friday morning, the leading cryptocurrency was trading around $77,593, up from $62,818 in just seven days. In percentage terms, the increase was 23.5% — only the 41st such result since 2010, but the last time similar dynamics were recorded was back in March 2023.
Rally Drivers: Macroeconomics and Regulation
The key catalysts for this move were two events that dramatically shifted market sentiment. First, the U.S. Department of the Treasury announced plans to double its long-term bond buyback program, directly aimed at lowering their yields. This is a signal of monetary policy easing, which is traditionally positive for risk assets.
Second, U.S. President Donald Trump intensified pressure on Congress to pass the CLARITY bill. This document is designed to create clear federal rules for classifying digital assets — as securities or commodities. Such legal clarity is a long-awaited step by the market, capable of attracting institutional capital wary of legal risks.
The sharp price surge also triggered a powerful cascade of short position liquidations. Over the week, approximately $2.7 billion in shorts were forcibly closed on the crypto market, further amplifying the upward momentum. This marked the fastest trend reversal for Bitcoin since the start of 2026.
Institutional Demand Returns
Trader sentiment has changed dramatically. The Crypto Fear and Greed Index jumped to 74 on August 25 — a high not seen since October 2025. The market has clearly shifted from pessimism to a phase of euphoria.
This is confirmed by the dynamics of spot Bitcoin ETFs. Weekly inflows into these funds were the largest since October 2025, and August figures could prove to be record-breaking for the entire year. This is a significant moment: inflows have the potential to reverse the prolonged streak of outflows that dominated the market in 2026.
However, despite the impressive rebound, ETF holders are still at a loss of about 6%. The average purchase price across their portfolios stands at $84,029, while the spot price at the time of analysis is around $78,955. Yesterday, August 27, the rate briefly exceeded $80,000, but the sustainability of this level will depend on continued inflows into the funds in September.
My view: The current rally is more macroeconomic and regulatory in nature rather than purely speculative. However, to solidify above the psychological $80,000 mark and subsequently challenge the average purchase prices of ETF holders ($84,000+), it will require converting news-driven optimism into sustained institutional demand. If inflows into the funds persist, we could witness the beginning of a new structural upward cycle.