Bitcoin's Historic Rally: Why Analysts Say This Time Is Different
The cryptocurrency recorded one of its biggest weekly gains amid shifting market dynamics.
1Record-Breaking Price Surge
Bitcoin closed near $77,700 with a 24% weekly gain, defying August's historically weak performance. According to Bitfinex Alpha, this marked a significant deviation from the month's typical negative returns. The cryptocurrency broke out of its multi-month range after surpassing $71,000 on August 20.
2Treasury Policy Impact
The U.S. Treasury's expansion of its bond buyback program triggered liquidity inflows. $3 billion in Bitcoin short positions were liquidated within two days - the largest short squeeze on record. While futures open interest rose to $51 billion, long position liquidations remained limited.
3ETF Demand Hits Records
U.S. Bitcoin ETFs posted approximately $1.92 billion in weekly net inflows, their strongest since October 2025. This pushed assets under management above $96 billion. Spot market demand provided additional support beyond derivatives market activity.
4Corporate Players on Sidelines
Strategy, the largest public Bitcoin holder, reported no BTC transactions in its recent filing. With its average acquisition cost remaining at $75,385, the company saw its $9.5 billion paper loss transform into a $4.7 billion paper profit as BTC prices rose above this level.
5Shifting Supply Dynamics
Bitfinex analysts noted Strategy's decision to halt sales could be pivotal for sustaining Bitcoin's rally. This move eliminated part of the supply pressure present during consolidation. However, Bitcoin transfer volumes remain near eight-year lows, indicating subdued network activity.
6Critical Price Levels
Analysts identified thin supply between current prices and a heavy concentration around $84,000-$85,000. Short-term investors who entered at $64,500 and $73,500 have moved into profit, potentially turning these levels into support zones.
7Macroeconomic Backdrop
Mortgage rates declined for the second consecutive week despite housing market weakness. Builders continued price cuts as housing starts fell, suggesting liquidity might reach asset markets before permeating the broader economy.
8Sustainability Test
This rally differs from previous surges by being driven more by spot demand and institutional flows than derivatives. Yet the disconnect between network activity and price movement, along with supply concentrations at certain levels, presents key watchpoints for a sustainable bull market.
Original article: CryptoPotato — Bitcoin'de Tarihi Yükseliş: Analistler Bu Sefer Farklı Diyor