Bitcoin surged past the $79,000 level on Friday, August 21, 2026, reaching its highest price point since May 15. This daily gain of nearly 6% triggered a massive wave of liquidations in the derivatives market. Short positions worth $2.75 billion were wiped out during the initial squeeze, marking one of the largest forced short covering events in recent crypto history.
This movement was not an isolated event. Gold also touched $4,632 per ounce following a 2.2% gain. Both assets hit 14-week highs, recording monthly gains of 13% for the BTC/USD pair and 16% for XAU/USD. Their rally was driven by three main forces: macroeconomic conditions, regulatory signals from Washington, and buying pressure from the spot market.
Dollar Under Pressure, Institutions Buy Up
On the institutional demand side, inflows accelerated sharply. Bitcoin ETFs bought around 7,500 BTC in just one day - the highest daily purchase volume since April 2026. This transaction extended a positive trend after they pulled in $853.5 million in inflows over the previous five consecutive trading sessions.
Macroeconomic factors also paved the way. The US Treasury announced plans to buy back up to $4 billion in long-term debt. This decision pressured the US dollar and revived the debasement trade, a market scenario that often benefits capital flight into assets like Bitcoin and gold. QCP Capital also highlighted the surge in Japanese government bond yields following yen intervention, further strengthening signals of movement in the current cross-asset market.
Responding to White House Signals
Policy risks from Washington, which often put the brakes on the market, are now starting to ease. In a White House meeting with crypto and financial executives, President Trump urged Congress to pass a “fair version” of the Clarity Act.
This shift in political tone was immediately reflected in market betting data. The Polymarket platform recorded that the odds of Bitcoin breaking $90,000 before 2027 now stand at 48%, up sharply from the beginning of the week. Beyond that positive sentiment, technical analyst Rekt Capital pointed out a caveat. Bitcoin must reclaim and hold above the 50-week EMA indicator at $77,232 to prove that this new macro uptrend is indeed valid.
Reported by Decrypt.
Also read: What Is Bitcoin Halving?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
