Bitcoin Price Today Holds Above $77,000 After Its Strongest Weekly Rally Since 2023

Date: August 23, 2026

Key Takeaways

• Bitcoin traded near $77,700 after gaining over 20% during its strongest week since March 2023.
• BTC briefly exceeded $79,000 due to Treasury bond buybacks, regulatory optimism, and spot ETF inflows.
• US spot Bitcoin ETFs recorded approximately $1.6 billion of net inflows from Monday through Thursday.
• The rally forced hundreds of millions of dollars in Bitcoin short positions to close, accelerating the price increase.
• Holding the $75,000–$76,000 area could keep the $80,000 level within reach, although elevated leverage creates pullback risk.

Current Market Overview

Bitcoin remained above $77,000 on Monday, supported by institutional inflows, improving US regulatory expectations, and a significant short squeeze. The cryptocurrency traded between approximately $75,680 and $78,030 over the weekend, reaching a three-month high above $79,300 on Friday.

Over the previous week, Bitcoin gained more than 20%, marking its strongest performance since March 2023, and lifted the asset approximately 30% above its March 2026 low. Historical price data showed BTC rising 7.1% on August 19, 5.3% on August 20, and another 7.3% on August 21.

Factors Driving the Rally

Treasury Bond Buybacks

The initial breakout was catalyzed by the US Treasury Department's announcement to double the size of its liquidity-support buybacks for longer-dated government debt, increasing operations covering securities with maturities between 10 and 30 years from $2 billion to at least $4 billion starting September 9. This move pushed long-term Treasury yields lower and weakened the US dollar, leading to gains in Bitcoin and other alternative assets.

Spot Bitcoin ETFs Attract $1.6 Billion

Institutional demand was further confirmed by US spot Bitcoin exchange-traded funds, which attracted approximately $1.6 billion in net inflows between Monday and Thursday, with $606 million on Thursday alone. BlackRock’s IBIT accounted for a significant portion of these inflows, indicating strong market demand.

Political Developments

Political developments also played a role, as President Donald Trump urged Congress to advance the CLARITY Act, aimed at establishing clearer federal oversight of digital assets. This intervention was seen as a sign that the administration is prioritizing crypto regulation, which could enhance institutional comfort in offering crypto-related services.

Short Liquidations

The speed of the price increase was influenced by the liquidation of short positions. Traders had built up short positions during weeks of range-bound trading below $65,000. As Bitcoin broke through this ceiling, approximately $709 million in Bitcoin shorts were liquidated in a single day, creating a feedback loop that further propelled prices upward.

Future Outlook

The $79,000–$80,000 region is now Bitcoin’s immediate resistance area. A decisive break through $80,000 could reinforce the bullish structure and attract momentum traders. However, Bitcoin remains significantly below its 52-week high of approximately $126,000, indicating substantial overhead supply from investors who bought at higher prices.

On the downside, the $75,000–$76,000 area represents the first important support zone. A break below it could expose lower levels around $72,000 and the former breakout region around $69,000–$70,000.

This week’s Nvidia earnings and Federal Reserve Chair Kevin Warsh’s Jackson Hole address could also influence Bitcoin through changes in the dollar, Treasury yields, and overall risk appetite.

Conclusion

Bitcoin's latest rally is supported by a combination of ETF inflows, political catalysts, and renewed demand for alternative assets. However, maintaining the price above $77,000 will require continued buyer participation after the short squeeze fades.