Bitcoin Trades Above $78,000 as Ethereum Clears $2,500
The crypto market extended its recovery into August 22, with total capitalization reaching $2.64 trillion as Bitcoin traded near $78,570 and gains spread increasingly toward Ethereum and higher-beta altcoins.
Summary:
- Crypto market capitalization climbed 7.31% to $2.64 trillion.
- Bitcoin traded near $78,570 after gaining 7.88% over 24 hours.
- Ethereum, XRP, Dogecoin and Zcash outperformed Bitcoin during the latest session.
- Liquidations rose sharply as leverage amplified the market-wide move.
The latest stage of the rally matters because the market is no longer being carried primarily by Bitcoin: Ethereum gained 9.05% over 24 hours, XRP rose 14.79%, Dogecoin advanced 18.43% and Zcash surged 28.10%, pointing to a broader repricing of crypto risk after this week’s macro-driven Bitcoin breakout.
Bitcoin Is Still Leading the Market, but No Longer the Returns
At the time of writing Bitcoin trades at $78,443, up 7.88% over 24 hours and 25.09% over seven days. Its market capitalization reached approximately $1.57 trillion.
That remains the dominant source of market value, but the return profile has changed.
Ethereum climbed to $2,527.09 after gaining 9.05% in one day and 34.61% over the week. XRP reached $1.44 after a 14.79% daily rise, while Dogecoin gained 18.43% to $0.09407.
The strongest move among the large assets displayed came from Zcash, which rose 28.10% in 24 hours and almost 50% over seven days to $734.32.
| Asset | Price | 24h | 7d |
|---|---|---|---|
| Bitcoin | $78,569.36 | +7.88% | +25.09% |
| Ethereum | $2,527.09 | +9.05% | +34.61% |
| XRP | $1.44 | +14.79% | +45.78% |
| Dogecoin | $0.09407 | +18.43% | +34.89% |
| Zcash | $734.32 | +28.10% | +49.77% |
The Rally Started in Bonds, but Crypto Has Taken It Further
The original catalyst remains outside the crypto market.
On August 19, the U.S. Treasury announced that it would at least double the maximum size of liquidity-support buybacks for longer-dated nominal government securities. Purchases in the 10- to 20-year and 20- to 30-year sectors will rise from a maximum of $2 billion to at least $4 billion per operation beginning September 9.
The announcement followed severe pressure in long-duration Treasury markets and initially pushed yields lower. Bitcoin reacted quickly because lower yields and a weaker dollar reduce some of the relative disadvantage of holding an asset that produces no fixed income.
There is an important qualification. Treasury buybacks are not quantitative easing.
The Treasury is exchanging one form of government liability for another as part of debt-management and market-liquidity operations. The Federal Reserve is not creating reserves to purchase securities. Yet markets can still respond to the operation because improved liquidity in stressed Treasury sectors can influence yields, the dollar and broader financial conditions.
That distinction explains why Bitcoin’s initial move had a rational macro basis without requiring the stronger claim that the United States had restarted QE.
Bitcoin has since carried the move considerably further. The Financial Times reported that BTC had gained about 23% over the week as investors responded to the buyback announcement, dollar weakness and renewed concern about U.S. fiscal conditions. Gold rallied at the same time, indicating that at least part of the demand extended beyond conventional risk-taking.
Altcoin Outperformance Changes the Character of the Rally
The latest session is more interesting than the first Bitcoin breakout because capital is now being distributed differently.
When a rally begins after a macro shock, Bitcoin often absorbs the first wave of liquidity because it offers the deepest spot and derivatives markets in crypto. Once BTC establishes direction, traders can shift into assets with greater volatility and potentially larger percentage moves.
The current numbers fit that sequence.
Bitcoin gained 7.88% over 24 hours, but Ethereum rose 9.05%, XRP 14.79%, Chainlink 14.61%, Dogecoin 18.43% and Zcash 28.10%.
Ethereum’s seven-day performance is particularly relevant. ETH has gained 34.61% compared with Bitcoin’s 25.09%, narrowing some of the relative weakness that characterized earlier stages of the market cycle.
That does not establish the beginning of a durable “altseason.” A genuine rotation would require broader and more persistent outperformance across multiple market segments rather than several days of strong returns.
It does show that the current rally has progressed beyond the phase in which traders are willing to own only Bitcoin.
Why Rising Altcoins Can Make the Market More Fragile
Broader participation is usually interpreted positively because it shows stronger risk appetite. It also changes the risk profile of the rally.
Bitcoin has the deepest liquidity in crypto. Moving progressively into smaller assets introduces thinner order books, higher volatility and greater sensitivity to leveraged positioning.
That matters because the current advance is already heavily influenced by derivatives.
CoinMarketCap showed approximately $2.34 billion in 24-hour liquidations, up 154.83%. Separate market data indicate that the broader multi-day Bitcoin rally has eliminated more than $4 billion in short positions as traders betting against the recovery were forced to close positions. Investor’s Business Daily reported more than $4.3 billion in short liquidations since Wednesday.
Forced buying can turn a conventional rally into a much faster price move.
When a short position is liquidated, the exchange buys back the asset or closes the derivatives exposure. Rising prices therefore create additional demand, which can push the next group of leveraged shorts toward liquidation.
The mechanism is powerful while positioning remains one-sided. It becomes less useful once much of the vulnerable short exposure has already been removed.
That creates a different question for the weekend market: how much demand remains when traders are no longer being forced to buy?
ETF Flows Suggest the Rally Is Not Only a Short Squeeze
There is evidence of spot demand underneath the derivatives move.
U.S. spot Bitcoin ETFs attracted approximately $606.3 million in net inflows on Thursday and about $1.61 billion over the week.
Earlier in the rally, 21Shares reported roughly $517 million of net Bitcoin ETF inflows on August 19, the strongest daily total since May.
This distinction matters because ETF purchases and liquidations affect the market differently.
Liquidations are mechanical and temporary. Once the position has been closed, that source of forced demand disappears.
Net ETF inflows represent investors voluntarily allocating capital through regulated products. They can reverse as easily as they arrive, but sustained positive flows would provide a more durable source of demand than a short squeeze alone.
The strongest version of the current rally therefore depends on both mechanisms continuing to work in sequence: leveraged shorts accelerate the breakout, while spot buyers absorb supply after the forced buying fades.
A Fear & Greed Reading of 75 Changes the Entry Point
CoinMarketCap’s Fear & Greed Index has moved to 75, firmly inside the “Greed” range.
The reading is consistent with the speed of recent gains. Bitcoin is up more than 25% in seven days, Ethereum almost 35%, XRP nearly 46% and Zcash close to 50%.
Sentiment at 75 does not mean the market must reverse. It means that the conditions under which traders are entering have changed substantially.
READ MORE: Trump Opens Door to More Bitcoin as Hyperliquid Surges on US Hopes
Only days ago, buying Bitcoin near $60,000 involved accepting bearish sentiment and weak momentum. Near $79,000, a new buyer is entering after a sharp repricing and after billions of dollars of shorts have already been removed.
The upside thesis therefore requires new capital to continue arriving rather than simply relying on the same catalysts being repriced again.
That is especially relevant for altcoins, where daily double-digit gains can create much larger downside moves if liquidity disappears.
Bitcoin’s $80,000 Test Is Now About Acceptance, Not the Number
Bitcoin has moved close enough to $80,000 that the level has become the immediate technical reference point.
The market briefly reached approximately $79,463 during Friday trading before pulling back, according to Investor’s Business Daily.
A brief move through $80,000 would therefore be less informative than whether BTC can remain above the area.
The first support zone sits around the previous breakout area near $75,000. Holding that region during a pullback would preserve the sequence of higher short-term lows and indicate that buyers are willing to defend prices after the liquidation-driven advance.
Below $75,000, the market would begin giving back part of the latest breakout and could test whether demand closer to $70,000 remains intact.
The upside is more demanding. With Bitcoin already more than 25% higher over seven days, a sustained move through $80,000 would ideally coincide with continued ETF inflows and rising spot volume rather than another abrupt increase in leverage.
That would separate price acceptance from a temporary derivatives spike.
The Bond Market Is Sending a Less Comfortable Signal
Crypto prices have continued higher even though the macro catalyst that started the rally has become less supportive.
The 10-year Treasury yield returned toward 4.7% after its initial decline, while longer-term yields remained elevated. AP reported the 10-year near 4.73% as investors continued to price inflation and fiscal risks.
That divergence deserves attention.
If Bitcoin can hold near $80,000 while long-term yields remain high, the rally becomes less dependent on the immediate Treasury buyback reaction. Strong ETF demand, regulatory optimism and improving crypto-specific sentiment would then be carrying more of the load.
If higher yields begin pulling capital back toward fixed income, the opposite becomes possible. Crypto would be forced to absorb tighter financial conditions just as positioning has become substantially more optimistic.
The Treasury program itself does not begin at the larger size until September 9, which creates another distinction between the announcement effect and the actual implementation of the policy.
Markets have already repriced the signal. The transactions still have to occur.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
