Bitcoin climbed to an intraday high of $81,237.94 on Tuesday, its highest price since mid-May, before settling near $80,300. The weekly gain stood at roughly 25%, and August performance reached about 28%, which would make it the cryptocurrency's strongest month since November 2024.
$BTC hit $81,000 today.
— Ted (@TedPillows) August 25, 2026
Bitcoin is smashing through every resistance like it's nothing.
Now, BTC needs to break above $83,000, and the bear market will end. pic.twitter.com/iea0TwKE5e
The move traces directly to US Treasury Secretary Scott Bessent's decision to expand buybacks of longer-dated Treasury bonds. The policy pulled long-term yields lower and added pressure to the dollar. Geoff Kendrick, global head of digital assets research at Standard Chartered, described the intervention as "exactly the type of thing bitcoin loves," arguing that Bitcoin benefits when investors grow concerned about government interference in traditional markets.
Justin d'Anethan, head of research at Arctic Digital, made a direct case for why Bitcoin stood to gain most from the shift.
"The key driver of this move (the U.S. Treasury decision to artificially lower rates by buying back bonds) sends a powerful and solid signal that monetary conditions and thus capital are easing up," d'Anethan said. "It's easy to see why BTC, which underperformed in the first half of 2026, would be the prime beneficiary of this."
Short sellers took the worst of the move
The pace of the rally inflicted severe losses on traders with leveraged short positions. According to CoinGlass data, 99,682 traders were liquidated over a 24-hour period, with total liquidations at $680.66 million. The largest single position forced closed was a $103.54 million BTCUSDT trade on Bitget.
When prices move sharply higher and traders hold large leveraged bets against the asset, exchange systems automatically close those positions at a loss. That forces additional purchases and can push prices further.
The Crypto Fear & Greed Index reached 74, the level labeled "Greed" by Alternative.me, after months spent in fear territory.
Spot ETF flows provided a second engine
US spot Bitcoin ETFs recorded $337.6 million in net inflows on August 24, according to SoSoValue data. That extended a streak of six consecutive trading days of inflows, with the total over that period reaching $2.26 billion. The prior week produced $1.92 billion in net inflows, the strongest weekly result since October 2025.
Cumulative net inflows since launch rose to $54 billion. Total net assets across the funds stood at roughly $98.56 billion, equivalent to about 6.22% of Bitcoin's market capitalization.
Resistance levels that traders are now watching
$85,000 is meaningful resistance after Bitcoin reclaimed the $80,000 region. The firm noted that stronger spot demand would be needed to hold the breakout. IG market analyst Tony Sycamore said a sustained break above current levels could open the path toward the $95,000 to $100,000 range.
Tim Sun, senior researcher at HashKey Group, said Bessent's messaging reinforced the expectation that US policymakers have limited tolerance for further increases in long-term yields. He described that backdrop as supportive for both Bitcoin and gold.
Spot Ether ETFs recorded six consecutive days of inflows on Monday, adding $115.6 million in that session for a six-day total near $812.8 million. Spot XRP ETFs posted $13.8 million that same day, with cumulative net inflows since launch reaching $1.57 billion. Bitcoin traded around $80,700, up more than 20% over the past week, according to CoinGecko.
Gunel Ismayilova
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