Bitcoin Reclaims $80,000 After 113 Days as ETF Inflows and Short Covering Fuel Biggest Weekly Gain in Three Years

Bitcoin surged back above $80,000 on Aug. 24, snapping a 113-day stretch without a close at that level, as renewed spot ETF inflows and a wave of short liquidations combined to drive its strongest weekly advance in three years. Coinfomania reported the largest cryptocurrency closed above $80,000 for the first time in 113 days. The move carried into the next session, with CryptoBriefing saying Bitcoin traded above $80,000 for the first time since May. The Cryptonomist called the rally Bitcoin's biggest weekly jump in three years. The breakout follows months of choppy trading in which Bitcoin repeatedly struggled to stay above $80,000, a level widely viewed as a key psychological and technical threshold. Clearing it suggests momentum has turned after an extended period of muted price action. CryptoBriefing attributed the rally to two main drivers. First, sustained inflows into spot Bitcoin exchange-traded funds added incremental demand. Second, futures markets saw short positions forced out as prices climbed, triggering liquidations. When short sellers are liquidated, they must buy Bitcoin to close positions, which can amplify upside moves and create a feedback loop commonly described as a short squeeze. ETF inflows have remained a central catalyst for Bitcoin since spot funds launched in the U.S., offering both institutional and retail investors exposure without holding the asset directly. The latest inflows suggest some investors view current levels as an attractive entry point. Traders are now watching whether Bitcoin can hold above $80,000 or whether the rally fades if it was driven largely by forced buying in derivatives. Follow-through in ETF inflows over coming sessions may help clarify whether demand extends beyond short-covering dynamics. Market impact: Moves of this magnitude typically lift volatility across the broader crypto complex as participants adjust spot and derivatives positioning. While spillover into altcoins and Bitcoin-linked assets was not detailed in the cited reports, the combination of ETF-driven demand and leveraged futures positioning highlights how both institutional flows and derivatives mechanics can shape short-term price swings. FAQ - Why did Bitcoin rise above $80,000? Reports cited renewed inflows into spot Bitcoin ETFs and liquidations of short futures positions. - How long had Bitcoin been below $80,000? Coinfomania said it had not closed above $80,000 for 113 days; CryptoBriefing said it was the first time above that level since May. - What are short liquidations? They occur when traders betting on price declines are forced to buy back Bitcoin as prices rise, which can accelerate gains. - Does this guarantee further upside? The reports did not project direction; investors are likely to monitor ETF flows and futures positioning for confirmation. Originally reported by AltcoinGordon, written by Victoria Reed. Republished with permission.