Bitcoin rally fueled by $2.23B in U.S. ETF inflows

U.S.-listed spot Bitcoin ETFs recorded $2.23 billion of inflows during the late-August squeeze window, according to on-chain analytics from Glassnode. The ETF demand coincided with Bitcoin reaching an intraday high of $79,251.60 on Aug. 26 and trading near $78,000 at press time.

The inflows occurred the same week July personal consumption expenditures data showed headline PCE at 3.7% and core PCE at 3.3% on Aug. 26. Futures markets pushed the odds of a September federal funds rate hike to roughly 44% from about 36% before the report.

Daily trackers recorded continued ETF buying after the initial squeeze. Farside Investors’ data show $314.3 million of inflows on Aug. 25, including $284.4 million into BlackRock’s IBIT, extending a streak of positive ETF days from Aug. 17 through Aug. 25 to about $2.6 billion. ETF creations during the squeeze window were the largest seven-day intake so far in 2026.

On-chain metrics indicate a large forced-covering event earlier in the period. On Aug. 19 Glassnode logged the largest dollar-denominated single-day short liquidation in its dataset since 2019 and estimated that roughly 85% of liquidations in that window originated from short positions. At the same time, Bitcoin futures open interest fell about 11% in BTC terms through the rally while perpetual funding rates remained close to neutral.

Stablecoin liquidity and venue balances rose alongside ETF demand. The total stablecoin market capitalization was near $303.7 billion, up about $2.8 billion over the prior week. NYDIG reported a $1.25 billion increase in stablecoin supply during the rally, primarily from USDC.

Analysts placed the flows and data in the context of monetary policy. Bitget Research chief analyst Ryan Lee wrote that an in-line core PCE print ‘‘leaves the existing policy debate largely intact.’’ Sygnum Bank chief investment officer Fabian Dory described the data as ‘‘gradual disinflation rather than a demand shock.’’ Theo Capital CIO Iggy Ioppe observed that the reading neither forces a hike nor delivers a cut. DWF Labs market insights lead Martin Lee noted that traders were ‘‘paying for upside in the short term.’’

Market-structure indicators and upcoming expiries were identified as near-term catalysts. Glassnode highlighted a confluence zone between roughly $81,000 and $86,000 where cost-basis shelves, dealer gamma positioning and long-term-holder supply cluster, and set a breakout confirmation at a settled close above $83,300. Short-term-holder cost basis was cited near $70,000, with a deeper support range around $62,000–$65,000 and the original squeeze level near $62,900.

Deribit had about 81,700 Bitcoin options, with a notional value near $6.44 billion, set to expire on Friday at 08:00 UTC, with notable call concentrations at the $75,000 and $80,000 strikes. Bitcoin’s implied volatility rose from the fourth percentile of the prior 12 months on Aug. 17 to the 56th percentile on Aug. 26.