On 25 August, Bitcoin once again broke through the $80,000 mark and rose above $81,000 over the course of the day. According to Bybit, at the time of writing, BTC was trading at around $80.7–80.8 thousand — its highest level in more than three months. The rally was supported by a weaker dollar, capital inflows into US spot ETFs, the liquidation of short positions and expectations of clearer regulations for the US crypto market.
Briefly about the main points
- BTC rose to approximately $81.16 thousand over the course of the day.
- Bitcoin rose by around 28% in August.
- US spot ETFs attracted $1.92 billion over the week.
- The liquidation of short positions totalled around $7.2 billion.
- The current price is approximately 36% lower than the 2025 record.
The trend gained momentum following a week of sharp recovery
On the morning of 25 August, Bitcoin’s intraday high stood at around $81.16 thousand, whilst its low was around $76.86 thousand. According to Reuters, the cryptocurrency reached its highest level in more than three months.
For August BTC It rose by approximately 28%. Just over a week ago, it stood at around $63 thousand, and in the seven days leading up to 24 August, its value increased by approximately 22%, according to data from Investing.com.
The weakening of the dollar has reignited interest in Bitcoin and gold
One of the drivers behind this movement was the weakening of the US dollar. The market reacted to the US Treasury’s decision to increase its purchases of long-term government bonds. Investors interpreted this move as a sign of an attempt to curb the rise in long-term interest rates, even at the cost of potentially putting further pressure on the dollar.
Against this backdrop, the so-called ‘debasement trade’ has gained momentum — a shift towards assets capable of retaining their value in the event of a weakening of traditional currencies. Market participants regard gold and Bitcoin as such assets; gold has also risen to multi-month highs.
Spot ETFs have seen their largest inflow in ten months
US spot Bitcoin ETFs have attracted around $1.92 billion over the past week, according to Trading Economics. This is the largest weekly inflow in ten months.
The largest fund, the iShares Bitcoin Trust, received around $503 million in a single trading session, and approximately $1 billion over the course of the week, according to MarketWatch. Such funds offer large traditional investors the opportunity to gain exposure to BTC without having to directly purchase and hold the cryptocurrency.
The covering of short positions has boosted demand in the market, but the downside protection remains in place
The rally was fuelled by a short squeeze: traders who had bet on a fall in cryptocurrency prices using leverage were forced to close their positions as the price rose. This created additional demand for Bitcoin.
According to Trading Economics, around $7.2 billion leveraged bearish positions were liquidated on the cryptocurrency market last week. CoinDesk reports large options positions anticipating a rapid rise in BTC above $82,000, whilst investors are maintaining high demand for protection against a potential decline.
The crypto market is awaiting US regulations, but it is still a long way from a record high
Last week, the US President Donald Trump called on Congress to pass legislation as soon as possible setting out clearer rules for the cryptocurrency sector. According to Reuters, this call caused Bitcoin to rise by around 16%. Market participants expect that clearer regulation could make it easier for banks, funds and other large financial companies to participate in the digital assets sector.
At the same time, Bitcoin is still approximately 36% below its all-time high of around $126,000, set in October 2025. Analysts anticipate increased volatility and profit-taking following the rapid rise. Some market participants cite the $95–100 thousand range as a potential target, provided the current momentum is maintained.
