Could Japan's rate hike threaten Bitcoin's current 21% weekly rally?
Bitcoin price returns to $80,000 as crypto short liquidations surpass $220 million. Can BTC sustain the rally and challenge its bearish market structure?
Abraxas Capital, Fasanara Capital, and Wintermute hold combined short positions of 138,569 ETH and 3,425 BTC on the Hyperliquid platform. The joint unrealized losses of these positions reached approximately $75 million following recent market price surges. Abraxas Capital executed spot market hedges through withdrawals of 73,872 ETH from Binance over a four-day period.
Bitcoin derivatives markets are running hot while bitcoin's price tagged an intraday high of $79,989 Monday, with traders stacking billions into futures and options while paying increasingly steep premiums to chase even higher prices.
Strive acquired 1,110 bitcoins for approximately $81.5 million between August 17 and 21, at an average price of $73,409 per coin. The purchase raised the company's total holdings to 21,356 BTC, representing a 5.5% increase compared to mid-August.
Bitcoin rebounded to an August high of $79,989 after briefly dipping below $77,000, recovering from a weekend market slump. Market Recovery and Bitcoin Price Swings Bitcoin nearly tapped $80,000 on Monday as the cryptocurrency market appeared to recover from a weekend slump, which saw several high-cap altcoins back off from multi-month highs.
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Bitcoin has climbed nearly 24% from below $64,000 toward $80,000 as U.S. spot ETF inflows and forced short covering have fueled its strongest weekly advance since March 2023. Nansen senior research analyst Nicolai Søndergaard told crypto.
Bitcoin and Ethereum ETFs booked their strongest inflow week since October, but most of the gain came from coins investors already owned getting more valuable.
Bitcoin has recovered above $79,000 after briefly falling toward $78,200 as President Donald Trump threatened 50% tariffs on Canadian vehicles, automotive parts and steel from Jan. 1, 2027.
Bitcoin and Ethereum surged last week as falling Treasury yields, renewed US crypto optimism, and a wave of short liquidations sent digital assets sharply higher. Bitcoin climbed more than 20% and approached $80,000, while Ethereum gained about 30% in its strongest weekly advance since May 2025.
Bitcoin closed above $77,000 after clearing $71,000, with roughly $3 billion in crypto shorts liquidated while futures open interest continued rising. US spot Bitcoin ETFs attracted about $1.92 billion during the week, but weak onchain transfer activity leaves questions about how durable the rally is.