Bitcoin Surges Past $79k Amid Massive Short Liquidations

Bitcoin surged above $79,000 on Friday, August 21, 2026, marking a significant weekly high driven by a convergence of institutional buying, supportive macroeconomic shifts, and a friendlier regulatory outlook in Washington. The rally, which pushed the cryptocurrency well past its previous levels, was accelerated by a massive wave of short liquidations that forced bearish traders out of their positions.

The price breakout followed days of upward momentum that began earlier in the week. U.S. spot Bitcoin exchange-traded funds recorded substantial net inflows, attracting $517 million on August 19 and approximately $606 million on August 20. These figures represented a sharp increase in institutional demand and provided consistent spot market buying pressure. The influx of capital contributed to Bitcoin breaking through key resistance levels, including the $70,000 mark.

A key catalyst for the broader market move was a policy announcement from the U.S. Treasury Department on August 19. The Treasury stated it would at least double the maximum size of its liquidity support buyback program for long-dated bonds, increasing the per-operation limit from $2 billion to at least $4 billion...