Bitcoin ETF Inflows Explode as BTC Faces September Test

TLDR

• Bitcoin gained a record $14,775 in one week, rising from $62,818 to $77,593.
• The 23.5% weekly increase marked Bitcoin’s strongest percentage gain since March 2023.
• US spot Bitcoin ETF inflows reached their highest weekly level since October 2025, according to Galaxy Research.
• Around $2.7 billion in crypto short positions were liquidated as the rally triggered a major short squeeze.
• The Crypto Fear and Greed Index climbed to 74 on August 25, its highest reading since October 2025.

Bitcoin posted its largest weekly dollar gain on record after rising $14,775 in seven days. The price moved from $62,818 to $77,593, a 23.5% increase, according to Galaxy Research.

The move ranked as Bitcoin’s best percentage week since March 2023. It also pushed US spot Bitcoin ETF inflows to their strongest weekly level since October 2025.

Treasury Buybacks and CLARITY Act Drive Demand

Galaxy Research linked the rally to changes in US policy. The Treasury said it would double long-bond buyback operations, which aim to reduce pressure in the government debt market.

Last week's BTCUSD weekly candle was the single largest weekly gain by dollar amount in Bitcoin history.

By percentage, it was the 41st biggest weekly gain in history (+23.5%) and the biggest since March 2023. pic.twitter.com/tF17RTM0mA

— Galaxy Research (@glxyresearch) August 27, 2026

President Donald Trump also called on Congress to pass the CLARITY Act. The bill would create federal rules for deciding whether digital assets fall under securities or commodities law.

The price increase forced traders with bearish positions to close bets against Bitcoin. That short squeeze added buying pressure and helped fuel the fastest bullish shift in about a year.

CNBC reported that crypto traders lost roughly $2.7 billion in short liquidations during the week. The Crypto Fear and Greed Index climbed to 74 on August 25.

Bitcoin ETF Inflows Return Strongly

US spot Bitcoin ETFs recorded their strongest inflow week since October 2025, according to Galaxy Research. August is also tracking toward the largest monthly net inflow since Bitcoin’s previous record high.

The inflows mark a reversal from earlier 2026, when repeated withdrawals turned Bitcoin ETFs into net sellers. However, ETF investors still hold positions below their average purchase price.

Galaxy estimates the ETF holder cost basis at $84,029. Bitcoin price traded near $78,955 in the data set, leaving ETF investors roughly 6% below break-even levels.

Bitcoin later traded above $80,000 on Thursday. Attention centers on whether ETF inflows continue into September and whether demand remains firm after the recent short squeeze.

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