Bitcoin Tops $79,500 Briefly as Market Cap Crosses $1.5 Trillion

Bitcoin briefly exceeded $79,500 on Friday, pushing its market capitalization above $1.5 trillion. Behind this acceleration, American Bitcoin and Ether ETFs have just recorded a second day of strong inflows, with more than $800 million injected in the single session on August 20.

Bitcoin surpasses $79,500

Bitcoin’s rise accelerated again on Friday. After breaking through $69,000 on Wednesday, then exceeding $72,000 on Thursday, the leading crypto briefly touched $79,500.

The movement then lost a bit of speed, with BTC falling back below $78,000. Nevertheless, it retained a 24-hour gain of over 6% and had gained more than $15,000 in a week.

This surge also allowed Bitcoin’s market capitalization to exceed $1.5 trillion. A symbolic threshold for an asset that was still trading below $64,000 early in the week.

The speed of the rebound remains impressive. Bitcoin now gains more than 20% in a few days, even if it is still well below its all-time high.

More than $800 million flow into ETFs

The rally is not only based on liquidations of short positions. Flows to American ETFs also show a marked return of demand.

On August 20, the Bitcoin spot ETFs recorded inflows of $606 million, compared to $517 million the previous day.

Ether ETFs, meanwhile, captured $221 million. This brings combined inflows across the two categories to $827 million in a single session.

The change in pace is notable. On August 18, Bitcoin funds had attracted only $189 million, with purchases still largely concentrated on BlackRock’s IBIT.

The movement has since broadened. Products linked to XRP recorded inflows of $13 million, while those dedicated to Solana attracted $15 million.

According to data reported by CoinDesk, this second consecutive day of substantial flows strengthens the hypothesis of institutional demand behind the rise.

A rally no longer based only on a short squeeze

The start of the rebound was largely supported by liquidations of short positions. The move from below $64,000 to above $72,000 in a few days forced many bearish traders to buy back their positions, mechanically amplifying the rise.

But the strong inflows recorded by Bitcoin ETFs partly change the interpretation. Two consecutive sessions of significant flows show that new capital is now supporting the movement.

Caution remains advisable, however. After briefly touching $79,500, Bitcoin quickly fell back below $78,000, a sign that profit-taking is already beginning to appear.

The next sessions will therefore be decisive. If ETF flows remain strong, the market will have an additional argument in favor of a more sustained rebound. Otherwise, the rise could lose momentum.

The available supply will also need to be monitored. Some 28,000 BTC recently returned to exchanges, which could increase selling pressure. Nevertheless, Bitcoin has crossed two major thresholds: $79,500 and $1.5 trillion in market capitalization. The question now is whether institutional buying can support this new level.