Bitcoin Tops $77K as ETF Buying Extends Historic Short Squeeze

Bitcoin pushed above $77,000 on Friday, extending a sharp rebound that has erased billions of dollars in bearish crypto positions and lifted BTC to its highest level in nearly three months.

The rally accelerated after Bitcoin broke through $70,000, with another roughly $1 billion in crypto shorts liquidated over the latest 24 hours. The two-day total reached about $3.8 billion, following a record wave of forced closures on Thursday.

Bitcoin’s advance began earlier in the week after the U.S. Treasury expanded the maximum size of buybacks for longer-dated government securities. Long-term yields fell around the announcement, while BTC broke out of the range that had held it near the low-to-mid $60,000s for much of August.

Short positioning then magnified the move. More than $1 billion of Bitcoin shorts were liquidated in roughly an hour during Wednesday’s breakout toward $70,000, according to CoinGlass data.

ETF buying returns alongside the squeeze

The rally has also been accompanied by a sharp pickup in demand through U.S. spot Bitcoin ETFs.

The funds recorded $517.2 million in net inflows on August 19, their largest daily haul since May 4. Eight of the 12 products finished the session with positive flows, led by BlackRock’s IBIT with $284.7 million, according to SoSoValue.

The pace is considerably stronger than earlier this month. BlackRock had already led a $244 million inflow on August 5, when Bitcoin was still trading around $64,500.

ETF subscriptions are now arriving at the same time as traders are being forced out of bearish positions. That mix helped sustain buying after the initial breakout, rather than leaving the move dependent entirely on liquidations. How much demand remains once the short squeeze loses intensity will depend increasingly on whether spot ETF inflows continue.

Bitcoin was trading near $77,000 on Friday after gaining roughly 20% over five days.