Bitcoin climbed almost 25% in a matter of days and moved within reach of $80,000, its highest level since mid-May. The market has not seen a move this fast in months.
Gold rose toward a three-month high at the same time, and shares of crypto-linked companies gained on the stock market. Traders looked for an explanation, and found it not in exchange headlines but in the actions of the US Treasury.
BTC gained 20% in two days
According to Cointelegraph, Bitcoin's price rose 20% in just two days and broke above $77,000. It is the fastest short-term jump since May, and it happened without an obvious catalyst such as a new product approval or a major policy announcement.
Instead, the trigger was a shift in how the US bond market is being managed, something traders quickly nicknamed the "not-QE" trade.
Just a week earlier, the main topic among traders was the risk of a drop below $65,000, not talk of a new high. The sharp shift in sentiment shows how sensitive the market remains to signals from traditional finance.
A bond buyback traders called "not-QE"
In August, the US Treasury increased its buybacks of long-term bonds as part of a routine debt-management operation. Analysts cited by CoinDesk explain that technically this is not a quantitative easing program from the Federal Reserve. But the effect looked similar: yields on long-term bonds pulled back from 19-year highs, and liquidity returned to the market.
When the Treasury buys back older bond issues with cash, more free liquidity appears in the financial system. Part of that liquidity typically flows into risk assets, and Bitcoin was among the first to react to the shift. Gold followed close behind.
In scale, the move resembles how the market reacted during earlier easing cycles, even though this time it stems from a technical bond operation rather than a central bank decision.
A $1.2 billion short squeeze in a single day
The sharp reversal in yields caught bearish traders off guard. According to Decrypt, Bitcoin rose 7.9% in a single day to around $77,000, and that move wiped out roughly $1.21 billion in short positions on futures exchanges.
Closing out shorts created extra buying demand on its own. The price pushed through another leg up without new buyers stepping in, driven mostly by forced position closures.
Bitcoin ETFs post their biggest inflow since May
US spot Bitcoin ETFs pulled in $608 million in a single trading day, the largest daily inflow since May. According to Decrypt, 83% of that sum came from BlackRock's IBIT, the largest spot Bitcoin ETF on the market. Ether ETFs also logged an inflow, their biggest since October of last year.
Combined Bitcoin ETF inflows for August reached $2.07 billion, a 2026 record, Cointelegraph reported. Ether also traded above $2,350, rising along with the rest of the market.
Strategy swings from loss to profit, miners follow
Strategy, the largest corporate holder of Bitcoin, was recently sitting on a $13 billion unrealized loss on its BTC reserve. After the price crossed the company's average acquisition cost, the reserve turned positive and now shows roughly $1.4 billion in unrealized profit, Decrypt reported.
The company discloses its average coin acquisition cost in quarterly filings, and crossing that level is typically seen as a psychological threshold for the market.
Shares of public miners and treasury companies rose along with Bitcoin. Canaan, Strive and Metaplanet posted double-digit gains in a single trading session, while Metaplanet is also expanding its presence in the US market.
A move this sharp typically raises volatility on Ukraine's exchanger market too. When BTC gains 20% within days, some holders rush to lock in profits and sell Bitcoin for hryvnia, while others wait for the rally to continue.
How durable does the rally look
Not every market participant is equally optimistic. According to Decrypt, traders on prediction markets remain cautious even though the spot price has just posted its fastest jump in months.
None of these factors alone is likely to stop the rally, but together they explain why some traders prefer to wait before adding new positions.
- Prediction markets: derivatives on prediction platforms still price a continued rally with skepticism, despite the spot gains.
- The Treasury's bond buybacks remain a routine debt-management tool, not a standing liquidity program.
- Index funds: a possible review of index status for companies with large bitcoin reserves could affect demand from index-tracking funds.
- XRP erased its most bearish technical signal over the same period, closing the week above both moving averages.
Taken together, the market got a rare combination: cheaper long-term money, a technical short squeeze and returning institutional capital through ETFs. That does not guarantee the move toward $80,000 and beyond will continue, but it explains why this particular week turned out so sharp for Bitcoin.
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