Over the past week, the leading cryptocurrency has demonstrated a historic result, rising by $14,775 in dollar terms. This is an absolute all-time high in the history of digital asset observation. On Friday morning, the BTC price surged from $62,818 to $77,593, corresponding to a gain of 23.5%. In percentage terms, this is only the 41st result since 2010, but in absolute figures, we are witnessing a unique event. The last time a similar jump was recorded was in March 2023, highlighting the exceptional nature of the current dynamics.
What is behind the rapid rally?
Analyzing the market situation, I identify two key catalysts that triggered this explosive growth. First, the U.S. Treasury announced a doubling of its long-term bond buyback program. This measure, aimed at lowering their yields, is traditionally perceived by investors as a signal to reallocate capital into riskier assets, including bitcoin.
Second, U.S. President Donald Trump pressured Congress to pass the CLARITY bill. This document is designed to establish clear federal rules for classifying digital assets, defining them either as securities or as commodities. Such legislative clarity is a long-awaited trigger for the market, capable of opening the floodgates for institutional capital.
A technical factor also played an important role. The sharp price surge triggered a massive wave of short position closures. Over the week, shorts totaling approximately $2.7 billion were forcibly liquidated on the crypto market. This created a snowball effect, accelerating the fastest bitcoin reversal to growth since the beginning of 2026. Trader sentiment has changed dramatically: the Crypto Fear and Greed Index jumped to 74 on August 25, the highest level since October 2025, indicating the dominance of optimism.
ETFs confirm the trend reversal
Institutional demand has also returned to the market. The weekly inflow into U.S. spot bitcoin ETFs was the strongest since October 2025. Moreover, August figures could become the largest since the start of the year. If this trend continues, we will witness a break in the prolonged outflow streak observed in 2026.
Nevertheless, despite the positive dynamics, ETF holders are still on average 6% in the red. The average purchase price across their portfolios is $84,029, while the spot price at the time of the study was around $78,955. This means that a significant portion of institutional investors is waiting to break even, which could create additional pressure on the market as it approaches these levels.
Yesterday, on August 27, the spot bitcoin price already surpassed the $80,000 mark. Whether the growth continues will largely depend on whether ETF inflows persist in September. In my view, we are at a turning point: if the CLARITY legislative initiative is passed and capital inflows do not weaken, bitcoin has every chance to consolidate higher and update its historical highs in the coming weeks.