Bitcoin briefly surpassed $79,500 on Friday, bringing its capitalization above $1.5 trillion. Behind this acceleration, the American Bitcoin and Ether ETFs have just had a second day of strong inflows, with more than 800 million dollars injected on the August 20 session alone.
In brief
- Bitcoin briefly reached $79,500 on Friday before falling back below $78,000.
- Its capitalization has crossed the threshold of 1,500 billion dollars.
- Bitcoin and Ether ETFs attracted $606 million and $221 million, respectively, on August 20.
Bitcoin crosses $79,500
The rise of bitcoin accelerated further on Friday. After crossing $69,000 on Wednesday, then exceeding $72,000 on Thursday, the first crypto briefly touched $79,500.
The movement then lost a little speed, with BTC falling back below $78,000. He nevertheless maintained an increase of more than 6% over 24 hours and had earned more than $15,000 in the space of a week.
This surge also allowed Bitcoin’s capitalization to exceed $1.5 trillion. A symbolic threshold for an asset which was still trading below $64,000 at the start of the week.
The speed of the rebound remains impressive. Bitcoin is now gaining more than 20% in a few days, even if it is still significantly below its historical record.
More than $800 million flowing into ETFs
The rally is not based solely on liquidations of short positions. Flows into US ETFs also show a marked return in demand.
On August 20, spot Bitcoin ETFs saw $606 million in inflows, up from $517 million the day before.
Ether ETFs, for their part, captured $221 million. This brings combined entries across both categories to $827 million in a single session.
The change of pace is notable. As of August 18, Bitcoin funds had attracted just $189 million, with buying still largely focused on BlackRock’s IBIT.
The movement has since expanded. XRP-related products saw $13 million in entries, while Solana products attracted $15 million.
According to the data relayed by CoinDeskthis second consecutive day of significant flows reinforces the hypothesis of institutional demand behind the increase.
A rally that no longer relies solely on a short squeeze
The start of the rebound was largely supported by liquidations of short positions. The move from less than 64,000 to more than 72,000 dollars in a few days forced many bearish traders to buy back their positions, mechanically accentuating the rise.
But the strong inflows recorded by Bitcoin ETFs partly change the reading. Two consecutive sessions of significant flows show that new capital is now accompanying the movement.
However, caution remains in order. After briefly touching $79,500, bitcoin quickly fell back below $78,000, a sign that profit-taking is already starting to appear.
The next sessions will therefore be decisive. If ETF flows remain strong, the market will have an additional argument in favor of a more sustainable rebound. Otherwise, the rise could lose its strength.
The available supply will also need to be monitored. Some 28,000 BTC recently returned to platforms, which could increase selling pressure. Bitcoin has nevertheless crossed two major thresholds: $79,500 and $1.5 trillion in capitalization. The question now is whether institutional purchases will be able to support this new level.
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