Bitcoin posts record weekly dollar gain as Schwab says short squeeze is over

  • Bitcoin gained a record $14,775, or about 23.5%, from August 16 to August 23.
  • U.S. spot Bitcoin ETFs drew roughly $3.51 billion over the past month, while $1.37 billion in Bitcoin shorts were liquidated on August 19.
  • Schwab says the short squeeze has ended as open interest fell and funding rates returned to neutral; Bitcoin is testing the 50-week average near $81,795.

Bitcoin recorded its largest weekly gain in U.S. dollar terms, rising $14,775, or about 23.5%, between August 16 and August 23 as ETF inflows, macro catalysts and forced short covering pushed the price toward $80,000. Galaxy Research said the percentage increase ranked 41st among 840 trading weeks and was the fourth-largest since 2020, while the dollar advance exceeded the prior record. U.S. spot Bitcoin ETFs attracted about $3.51 billion over the past month, with weekly inflows reaching their strongest level since October 2025. Charles Schwab said the rebound was primarily a mechanical short squeeze rather than evidence of renewed investor conviction: $1.37 billion in Bitcoin shorts were liquidated on August 19 and more than $2 billion in leveraged short positions were wiped out across August 19 and 20. Bitcoin later reached about $81,265 before meeting resistance near the 50-week moving average around $81,795. Perpetual-futures open interest fell to its lowest level since May 2026 and funding rates returned to neutral, while Schwab said a Federal Reserve that showed no sign of loosening policy supported caution. The market now faces a test of whether Bitcoin can hold above the 50-week average and whether ETF demand persists after the leverage reset.

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