BTCUSDTPerp78,126.7-0.01%ZROUSDTPerp1.027-3.95%FFUSDTPerp0.09349+2.24%A few days ago, Bitcoin was trading around $63,000. Today, the market is already talking about $80,000. What happened—and most importantly, can this rally continue?
The crypto market has once again made headlines.
Over the past week, Bitcoin has risen by roughly 23%, and on Friday, August 21, the price climbed to nearly $79,500—its highest level in about three months. At the time of publication, BTC was around $77,000–78,000.
But behind that neat number is a much more interesting story.
Because this rise didn’t happen simply because “everyone started buying Bitcoin.”
First, the market forced the bears to give up
Imagine a trader who is certain:
“Bitcoin will fall.”
They open a short position — a short.
But instead of falling, Bitcoin starts rising.
The price rises from $65,000 to $70,000, then to $75,000.
For the trader, things get even more painful. If the price keeps rising, the loss will grow.
They close their position and are forced to buy Bitcoin back.
And that’s where a paradox emerges:
the bear who bet on a drop becomes a buyer himself.
When there are many such traders, a chain reaction starts — a short squeeze.
That’s exactly what has become one of the main drivers of the market right now.
According to Investors.com, since the rally began, more than $4.3 billion in short positions have been liquidated from the market.
So part of Bitcoin’s rise was literally created by those who were betting against it.
But there’s another important player — an ETF
If Bitcoin were rising only due to short liquidations, the situation would look far less convincing.
But at the same time, institutional demand returned.
On Thursday, spot Bitcoin ETFs in the US saw about $606 million in net inflows in a single day — the best figure since May.
Over the week, inflows into these ETFs reached about $1.61 billion.
For comparison:
$1.61 billion isn’t money from just a few active traders.
This is capital that flows through regulated exchange-traded instruments and allows large investors to get exposure to Bitcoin without needing to store the coins themselves.
That’s exactly why ETFs are now one of the main indicators the market watches.
Why did Bitcoin start rising in the first place?
This is where it gets interesting.
One of the catalysts was the US Treasury Department’s decision to increase the volume of long-term government bond buybacks.
After the bond yield announcement and the dollar started falling, Bitcoin received additional support as a scarce global asset.
At the same time, expectations of more favorable crypto regulation in the US increased.
President Donald Trump urged Congress to speed up work on legislation for the structure of the crypto market, and the CFTC began discussing future rules for digital assets.
It was a rather rare combination:
macroeconomics + ETFs + regulation + short squeeze.
And all of this happened almost simultaneously.
$80,000 — a new target or a new barrier?
Now the main question.
Bitcoin is already approaching a psychologically important level: $80,000.
That’s exactly why these round levels often become an area of struggle between buyers and sellers.
For bulls, the logic is simple:
“If BTC firmly holds above $80,000, the market could get a new boost.”
For bears, the situation looks different:
“The rise happened too fast. After a move like that, a correction is needed.”
And both sides have arguments.
What supports the idea of continued growth?
1. Strong inflows into ETFs.
$1.61 billion over the week shows that institutional demand really has returned.
2. Bitcoin rose more than 20% in a week.
This is one of the strongest weekly results in recent years.
3. The regulatory backdrop is becoming more positive.
The market is counting on the passage of legislation that will create clearer rules for the crypto industry.
4. The dollar weakens.
A weaker dollar and changes in US bond yields may support interest in alternative assets.
So why should traders still be cautious?
Because a short squeeze can’t last forever.
When short positions have already been liquidated, part of the forced buyers disappears.
Then the market needs to find a new source of demand.
And this is where ETFs become especially important.
If institutional inflows continue, the market will receive real confirmation of demand.
But if inflows suddenly slow down, Bitcoin may run into profit-taking.
In other words:
$79,000 isn’t proof of a new bull market yet.
This is a signal that the market has changed.
It’s interesting to look at the behavior of well-known players
In the crypto world, two opposing philosophies have existed for a long time.
For example, Michael Saylor and his Strategy placed a bet on long-term accumulation of Bitcoin, rather than trying to guess every short-term move in the market.
Another approach is represented by the well-known trader Peter Brandt, who pays a lot of attention to charts, trading models, and risk management.
And this is a good example for the average investor.
You can view Bitcoin as an asset for years.
And could you try to profit from the price move over the course of a few hours?
The problem begins when a person thinks they’re making a long-term investment, but in reality they’re panicking at every candle on a 5-minute chart.
And what should the average investor do?
The most dangerous thought right now is:
“Bitcoin has already risen by 23%. So you need to buy right away before it gets even more expensive.”
But a 23% increase doesn’t mean the next 23% is guaranteed.
After a strong move, a correction is possible — even if the long-term trend remains positive.
So instead of trying to guess the perfect entry point, it’s smarter to ask yourself a few questions:
How much money am I really willing to invest?
What will happen to my portfolio if Bitcoin drops by 20%?
Am I buying because I believe in the long-term idea, or am I just afraid of missing the rise?
Do I have an exit plan?
If those questions have no answers, the problem may not be Bitcoin.
The problem is the lack of a strategy.
The main lesson from today’s rally
The most interesting thing in the current BTC move isn’t even the $79,000 number.
And the way Bitcoin got there in the first place.
First, the market was under pressure for a long time.
Then a macroeconomic catalyst appeared.
Bitcoin began to rise.
Short sellers began closing positions.
Liquidations accelerated the move.
ETFs began to receive large inflows.
Positive regulatory news boosted sentiment.
And now the market is already talking about $80,000.
This is a great illustration of how the crypto market works:
price is the result not of a single event, but of a collision of liquidity, expectations, emotions, and capital.
What happens next?
There are three obvious scenarios.
🚀 Scenario #1: Bitcoin breaks through $80,000
If the price firmly holds above this level and inflows into ETFs continue, the market could get a new boost.
↔️ Scenario #2: Bitcoin stalls
After such a rapid rally, traders may start locking in profits.
In this case, BTC can move into a sideways range and give the market time to “digest” the growth.
📉 Scenario #3: a correction
If capital inflows slow down, and buyers can’t hold those high levels, some participants may start closing positions.
This doesn’t necessarily mean the start of a bear market.
Sometimes even a strong uptrend needs a breather.
$80,000 is just a number
For some traders, Bitcoin around $80,000 means:
“A new bull market has started.”
For others:
“It rose too fast — time to sell.”
And for a third group:
“I won’t do anything at all until the market shows me the direction.”
And the final option sometimes turns out to be the most reasonable.
Because in cryptocurrencies you don’t have to participate in every move.
Bitcoin really is back in the spotlight. But after one of the strongest weekly surges in years, the main question is no longer “can BTC rise?”
The main question sounds different now:
Can the market turn this short squeeze into sustainable demand?
That’s exactly what you should keep an eye on in the coming days.