Bitcoin (BTC) gained $14,775 in a single week, the largest one-week dollar increase in its history. Galaxy Research says the rally also drove the strongest US spot Bitcoin ETF inflow week since October 2025.

The weekly close jumped from $62,818 to $77,593, a 23.5% move ranked 41st by percentage increase since 2010. By percentage increase, it was Bitcoin’s best week since March 2023.

What Drove Bitcoin’s Record Week

Galaxy Research linked the rally to two catalysts. The US Treasury said it would double its long-bond buyback operations, used to ease pressure on Treasury yields.

President Trump also urged Congress to pass the CLARITY Act. The bill would set federal rules for classifying digital assets as securities or commodities.

The move also triggered a short squeeze. Traders who had bet against Bitcoin were forced to close positions, accelerating Bitcoin’s fastest bull flip in a year.

Roughly $2.7 billion in short positions were liquidated across crypto markets that week, according to CNBC.

Sentiment also swung sharply. The Crypto Fear and Greed Index reached 74 on August 25, its highest level since October 2025.

ETF Inflows Confirm the Rebound

Spot Bitcoin ETF demand returned at the same time. Weekly inflows reached their strongest level since October 2025, Galaxy Research data shows.

August is on track to post the biggest monthly net inflow since Bitcoin’s prior all-time high. That would reverse months of ETF outflows that left the funds as net sellers in 2026.

ETF holders remain about 6% underwater even after the rebound. Their average cost basis sits at $84,029, against a $78,955 spot price, Galaxy Research data shows.

Bitcoin’s spot price traded above $80,000 on Thursday.

Whether the rebound continues may depend on ETF inflows holding into September. Traders will also watch if last week’s short squeeze proves lasting or temporary.

Source: BeInCrypto