The past week was a landmark one for the entire crypto market: Bitcoin posted its strongest weekly gain in dollar terms in the entire history of digital assets. On Friday morning, the leading cryptocurrency's price recorded a rise of $14,775, an absolute record. In percentage terms, this is only the 41st result since 2010, but the last time a similar surge was observed was back in March 2023.
Over seven days, BTC rose from $62,818 to $77,593, a gain of 23.5%. Such a rapid move could not go unnoticed: it triggered a cascade of liquidations and a dramatic shift in market sentiment.
Rally drivers: macroeconomics and regulation
At the core of this powerful momentum are two key events. First, the U.S. Treasury Department announced its intention to double its long-term bond buyback program, directly aimed at lowering their yields. This is a classic signal of easing financial conditions, which traditionally favors risk assets, including cryptocurrencies.
Second, U.S. President Donald Trump called on Congress to pass the CLARITY bill. This document aims to bring clarity to the regulation of digital assets by defining their status as either securities or commodities. For institutional investors, this is a critical step that removes legal uncertainty.
The sharp price reversal also triggered a massive wave of short position closures. Traders who had bet on further declines were forced to lock in losses, which only amplified the upward momentum. Over the week, approximately $2.7 billion worth of short positions were liquidated across the crypto market.
ETFs: the return of institutional demand
Market participant sentiment has changed dramatically. The Crypto Fear and Greed Index jumped to 74 on August 25, the highest reading since October 2025. A value above 50 indicates optimism dominating, and the current figures fully confirm this.
Demand for spot Bitcoin ETFs has also returned. Weekly inflows were the strongest since October 2025. If August's momentum holds, the month could end with the largest inflows since the start of the year, finally reversing the prolonged outflow streak observed in 2026.
Nevertheless, even after this surge, ETF holders remain down roughly 6%. The average purchase price across their portfolios stands at $84,029, while the spot rate at the time of the study hovered around $78,955. Yesterday, August 27, Bitcoin briefly broke above the $80,000 mark, but the sustainability of this level will depend on continued inflows into the funds in September.
My view: The current momentum looks convincing, but the key test will be holding levels above $80,000. If ETF inflows continue, we could see a test of the institutional average purchase price around $84,000 — that is where it will be decided whether this rally is the start of a new bull trend or merely a powerful correction within a long-term downtrend channel.