Bitcoin has staged one of its strongest weekly advances in more than five years, surging about 23 per cent as US Treasury debt buybacks, heavy exchange-traded fund inflows and a weakening dollar revived demand across cryptocurrency markets.The world’s largest cryptocurrency ended the week through August 23 near $77,400, gaining about $14,300 in dollar terms and 22.7 per cent over seven days. The advance was its second-best weekly performance since early 2021 and its largest weekly dollar gain on record. Bitcoin traded around $77,000 on Monday after briefly approaching $80,000 during the rally.
The move marked a sharp reversal from months of weakness. Bitcoin had fallen from a record above $126,000 in October 2025 and slipped below $60,000 during June. Its latest rebound has pushed the token roughly 30 per cent above its summer lows while restoring market capitalisation to above $1.5 trillion.
A major catalyst came from the US Treasury Department’s decision to expand buybacks of longer-dated government securities. The Treasury doubled the amount targeted in certain operations from $2 billion to $4 billion as policymakers sought to improve liquidity in a bond market strained by rising yields and heavy government borrowing.
Investors initially treated the action as a liquidity-positive development. Longer-term Treasury yields retreated after the announcement, while the dollar weakened. Bitcoin, gold and other assets commonly viewed as alternatives to government-issued currencies rose sharply.
The buyback programme is not quantitative easing and does not represent money creation by the Federal Reserve. Treasury repurchases are designed primarily to support functioning in less-liquid parts of the government bond market. Yet the scale and timing of the expansion encouraged traders to reassess financial conditions, particularly after long-dated yields had climbed to levels not seen for nearly two decades.
Concerns about US fiscal sustainability have also strengthened the investment case advanced by bitcoin supporters. Federal debt has moved beyond $40 trillion, while higher interest costs and persistent budget deficits have increased scrutiny of Washington’s financing requirements.
The dollar index, which measures the currency against a basket of major counterparts, fell towards 98.6 last week and has dropped about 3 per cent since the end of July. A weaker dollar tends to support assets priced in the currency and has strengthened demand for gold as well as cryptocurrencies.
Institutional flows provided another important source of momentum. US-listed spot bitcoin ETFs drew roughly $1.9 billion of net inflows during the five trading sessions through August 21, their strongest weekly showing this year. Combined bitcoin and ether ETF inflows reached about $2.6 billion.
Bitcoin funds attracted $517 million on August 19 alone, their biggest daily inflow since early May. BlackRock’s iShares Bitcoin Trust accounted for more than half of that buying, while products operated by Fidelity and ARK Invest also recorded substantial subscriptions.
The flows suggested that the rally was not being driven solely by leveraged cryptocurrency traders. Spot ETFs have become a significant channel through which asset managers, wealth advisers and other traditional investors gain exposure without directly holding tokens.
Leverage nevertheless amplified the move. Billions of dollars in bearish crypto positions were liquidated as bitcoin broke through price levels that had contained it for months. Forced purchases by short sellers added momentum as bitcoin moved above $69,000 and then $72,000.
The rally spread rapidly through the wider market. Ether gained more than a quarter during the week, while XRP, Solana and several smaller tokens posted still larger increases. Shares of cryptocurrency-linked companies, including exchanges and firms holding significant bitcoin reserves, also strengthened.
Policy developments in Washington added to the improving mood. President Donald Trump has pressed Congress to advance legislation establishing clearer rules for digital assets, while regulators have continued work on frameworks governing cryptocurrency offerings and trading. Expectations of greater regulatory certainty have reduced some of the risk premium investors previously attached to the sector.
The speed of the advance, however, has raised questions about its durability. Bitcoin remains well below its 2025 record, and part of the week's gain was produced by short covering rather than new long-term investment. Sustained ETF subscriptions are therefore being watched closely as a measure of whether institutional demand is rebuilding.
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Cryptocurrency