- Bitcoin is holding near $77,000 after a 20% rally, but fading short-squeeze pressure has kept BTC below $80,000.
- Strong Bitcoin ETF inflows could support another breakout if institutional demand continues.
Bitcoin is trading near $77,000 after gaining more than 20% last week. The rally pushed BTC close to $80,000, but the price has struggled to break above that level.
The latest move was supported by strong ETF inflows, a weaker dollar, improved liquidity expectations and a major short squeeze. Now, Bitcoin needs fresh buying to continue its advance.
Bitcoin Rally Loses Short-Squeeze Support
More than $4.3 billion in bearish crypto positions were liquidated from Wednesday onward as Bitcoin surged. The forced buying helped push BTC from the mid-$60,000s toward $80,000.
However, short sellers cannot keep providing the same buying pressure once most crowded positions have been cleared.
The next move will therefore depend more on spot demand, liquidity and broader market conditions. Bitcoin may need stronger fundamentals to move decisively above $80,000.
Bitcoin ETF Inflows Reach $1.9 Billion
US spot Bitcoin ETFs provided another major source of demand. The funds recorded $1.9 billion in net inflows last week, marking their strongest weekly total of 2026.
Bitcoin ETFs attracted $606.3 million on Thursday alone. BlackRock’s IBIT accounted for about $503 million of that total.
Wednesday also saw strong demand, with ETF inflows reaching $517.2 million. These flows suggest that institutional interest has returned after a weaker period. Still, investors will be watching whether the buying continues after Bitcoin’s rapid price increase.
Bitcoin spot and perpetual markets also turned positive at the same time for the first time since October 2025, according to CryptoQuant founder Ki Young Ju.
However, Ju noted that demand remains modest. A sustained improvement over the coming weeks could provide stronger evidence of a broader market recovery.
Fed Policy Remains a Key Risk
Bitcoin’s rally also benefited from expectations of improved liquidity after the US Treasury increased buybacks of longer-dated government bonds.
The move initially weakened the dollar and supported expectations for better liquidity. Those conditions can benefit risk assets such as Bitcoin.
However, elevated long-term Treasury yields remain a challenge. Higher yields can attract capital that might otherwise move into riskier assets.
CoinShares head of research James Butterfill said Bitcoin could remain range-bound, with $80,000 acting as an important upper boundary.
For Bitcoin to break above $80,000 and hold there, investors may need clearer signals from the Federal Reserve. A shift away from tighter policy could strengthen the case for another leg higher.
For now, Bitcoin remains close to $77,000, but the next breakout may depend on whether institutional demand can replace the short-squeeze buying that powered last week’s rally.
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