Bitcoin broke out of a multi-month trading range last week, closing near $77,700 after reaching a weekly low of $62,750 and rising nearly 24% as it topped $71,000 on August 20. The move came despite August’s historically negative median returns for Bitcoin, Bitfinex Alpha said. Liquidity improved after the U.S. Treasury expanded its bond buyback program, helping trigger the liquidation of $3 billion in Bitcoin short positions over two days, the largest short-side wipeout on record. Futures open interest (the value of outstanding futures contracts) rose to $51 billion while long liquidations remained limited, indicating that new positions entered the market. U.S. Bitcoin ETFs attracted about $1.92 billion in weekly net inflows, their strongest weekly total since October 2025, lifting assets under management above $96 billion. Strategy, the largest publicly traded corporate Bitcoin holder, reported no BTC purchases or sales, leaving its average acquisition price at around $75,385. With Bitcoin above that level, its paper position shifted from a $9.5 billion loss to a $4.7 billion profit. Bitfinex analysts said Strategy’s pause in selling could help determine whether the breakout holds. On-chain activity (data from blockchain transactions) remains subdued, with transfer volumes near eight-year lows. Short-term holders with cost bases near $64,500 and $73,500 are in profit and could help turn former resistance into support. Bitfinex identified thin supply up to a heavier concentration around $84,000 to $85,000, which may form the next hurdle. Falling mortgage rates and weak housing activity also suggest easier financial conditions could reach asset markets before the broader economy.