Bitcoin surges 23% in best week since 2023 as short sellers lose $1 billion

Bitcoin records strongest weekly gain since 2023

Bitcoin, the largest cryptocurrency, rose 23% over the past seven days, marking its best weekly performance since 2023. The price reached as high as $79,319 before settling near $77,542.

This surge comes as traders who bet against Bitcoin—known as short sellers—lost over $1 billion. Short selling is when investors borrow and sell an asset hoping to buy it back cheaper later. When the price rises instead, they are forced to close their positions at a loss.

Key figures behind the rally

• Bitcoin’s price increased 23% in one week.
• Over $1 billion in short positions were liquidated, the largest such event ever recorded.
• U.S. Bitcoin exchange-traded funds (ETFs)—investment funds that track Bitcoin’s price—received $1.6 billion in new cash this week.
• On Thursday alone, Bitcoin ETFs saw $606.3 million in inflows, one of their biggest days this year.

Why Bitcoin’s price jumped

The U.S. Treasury Department announced plans to buy more long-dated bonds, which helped push down bond yields. Lower yields make assets like Bitcoin and gold more attractive because they do not pay interest. This change also weakened the U.S. dollar, which fell to a three-month low.

Regulatory developments may have also played a role. U.S. President Donald Trump met with crypto industry leaders and urged lawmakers to pass the Clarity Act, a long-awaited crypto regulation bill. A vote on the legislation is expected in September.

What is confirmed

• Bitcoin’s price rose 23% over the past week, its best performance since 2023.
• Over $1 billion in short positions were liquidated, according to data from Coinglass and Standard Chartered.
• Bitcoin ETFs received $1.6 billion in new investments this week, with $606.3 million on Thursday alone.
• The U.S. Treasury announced plans to increase bond buybacks, which contributed to lower yields.

What is still unclear

• The exact impact of the Clarity Act vote on Bitcoin’s price remains uncertain, as the legislation has not yet passed.
• It is unclear how long the current rally will last or if Bitcoin will maintain these price levels.

Why this matters for crypto investors

Bitcoin’s strong performance and the record liquidation of short positions suggest growing confidence in the cryptocurrency. The influx of money into Bitcoin ETFs also indicates that more traditional investors are entering the market.

Lower bond yields and a weaker dollar may continue to support Bitcoin’s price, as investors seek assets that do not lose value to inflation. Meanwhile, progress on crypto regulations could reduce uncertainty for businesses and investors.

Sources

• Bitcoin Magazine