Bitcoin has continued its upward trajectory as of Friday, reporting its most notable weekly performance since 2023, with over $1 billion in shortseller positions adversely affected and substantial inflows into exchange-traded funds.
The leading cryptocurrency was trading approximately 23% higher over a seven-day period, surpassing $77,542, and reaching a daily peak of $79,319.
This surge in Bitcoin’s value coincides with American investors’ increased interest in exchange-traded funds, which have attracted over $1.6 billion in new capital this week, according to data provided by Farside Investors.
Analysts from CNBC have noted that this rise represents Bitcoin’s best performance since 2023, largely inflating following the U.S. Treasury Department’s announcement on Wednesday to at least double its long-dated bond buybacks.
This announcement has contributed to a decline in yields, while assets such as Bitcoin and gold experience significant appreciation. Concurrently, the dollar is trading at a three-month low and is poised for its poorest performance during August.
The reasoning behind this trend stems from lower long-term yields, which diminish the opportunity cost of holding non-yielding assets, thereby bolstering risk-on sentiment.
Shortsellers also faced severe repercussions, with data from Coinglass revealing that over $1 billion in short positions were liquidated.
In a communication issued on Friday, Geoffrey Kendrick, the Global Head of Digital Assets Research at Standard Chartered, disclosed that Thursday marked the largest liquidation of Bitcoin shorts ever, with $1.1 billion in bets closed.
Following a period of reduced volatility throughout June and July, during which Bitcoin predominantly traded below $65,000, the current market dynamics have prompted a renewed investor interest.
This week, investors demonstrated an urgent appetite for Bitcoin ETFs, with these funds receiving $606.3 million on Thursday alone, marking one of their most active trading days this year.
Further contributing to this positive momentum is favorable regulatory news emerging from the White House. Earlier this week, President Donald Trump convened a meeting with executives from the cryptocurrency industry and encouraged lawmakers to expedite the passage of the Clarity Act.
A vote on this long-anticipated cryptocurrency legislation, long sought by the digital asset industry, is scheduled for September.
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