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EARNINGSUL Solutions' $254 million profit print hinges on a one-time gainSep 8, 2026

Bitcoin's biggest weekly rally since 2023 wipes $2.7 billion from short sellers

$77,200 per coin: Bitcoin ($BTC) closed late on August 21 up 23% from $62,800 at the week's open, its largest single-week gain since 2023, after the U.S. Treasury moved to compress government bond yields and President Donald Trump called…

By Kwame Asante·Aug 23, 2026·2 min read·crypto·$BTC

Key takeaways

  • Bitcoin closed August 21 at $77,200, up 23% from its $62,800 week open, its largest single-week gain since 2023.
  • Short sellers absorbed $2.70 billion in losses by August 20, with 172,108 professional traders liquidated per CoinGlass, the largest short-side loss on Bitcoin since 2021.
  • The rally followed the U.S. Treasury moving to compress government bond yields and President Trump calling on Congress to pass the Clarity Act on August 19.
  • Strategy's 840,447-Bitcoin position swung $14.4 billion in book value from a $13 billion loss at June's $58,000 low to a $1.4 billion unrealized gain at $77,200.
  • Ethereum rose nearly 30% on the week to $2,400, clearing the $2,000 resistance level it had previously failed to breach.

$77,200 per coin: Bitcoin ($BTC) closed late on August 21 up 23% from $62,800 at the week's open, its largest single-week gain since 2023, after the U.S. Treasury moved to compress government bond yields and President Donald Trump called on Congress to pass the Clarity Act on August 19. Short sellers absorbed $2.70 billion in losses by August 20, when BTC climbed to $72,000, liquidating 172,108 professional traders per CoinGlass data. CoinGlass marks it the largest short-side loss on Bitcoin since 2021.

The move ended six consecutive weeks of trading between $60,000 and $65,000. Bitcoin's year-to-date low of $58,000, set at the end of June, sits 25% below Thursday's price. The all-time high of $126,198, reached October 6, 2025, is 63% above it.

Level Price Status
YTD low (June) $58,000 Reported
Week open $62,800 Reported
Aug. 20 intraday high $72,000 Reported
Aug. 21 price $77,200 Reported
All-time high (Oct. 6, 2025) $126,198 Reported

Strategy's $14.4 billion reversal

Strategy (NASDAQ: $MSTR) holds 840,447 Bitcoin at an average cost of $75,385 per coin. At $77,200, that position carries an unrealized gain of $1.4 billion, or 2.4%. When BTC bottomed at $58,000 in June, the same stack carried a $13 billion unrealized loss. The combined swing in book value from trough to Thursday's price: $14.4 billion.

Ethereum ($ETH) rose nearly 30% on the week to $2,400, clearing the $2,000 resistance level it had failed to breach. Coinbase Global (NASDAQ: $COIN) and Strategy each added more than 15%.

Infrastructure and protocol

Crypto card spending reached $759 million in July, 2.5 times the year-ago figure per Andreessen Horowitz, with nearly nine million purchases settled through dollar-backed stablecoins. Monthly volumes on crypto cards were below $1 million as recently as October 2023.

TRM Labs reported in its 2026 AI-in-Crime Adoption Index that artificial intelligence use in cryptocurrency crimes rose 40% over the past year, pushing its index score to 54 out of 100 from 28 in 2024. The firm attributed the increase primarily to online scammers.

Stanley Druckenmiller opened second-quarter positions in Hut 8 (NASDAQ: $HUT), Riot Platforms (NASDAQ: $RIOT), and Bitdeer Technologies (NASDAQ: $BTDR), with his largest allocation sitting at 3.1 million Bitdeer shares purchased for $38 million. Singapore-based mining pool Poolin Technology filed for Chapter 11 in New Jersey, listing roughly $10 million in assets against liabilities of as much as $500 million and as many as 25,000 creditors.

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Frequently asked

How much did Bitcoin rise during the week?

Bitcoin rose 23% from a $62,800 week open to close at $77,200 on August 21, its largest single-week gain since 2023.

What triggered the Bitcoin rally?

The move followed the U.S. Treasury acting to compress government bond yields and President Trump calling on Congress to pass the Clarity Act on August 19.

How much did short sellers lose?

Short sellers absorbed $2.70 billion in losses by August 20, with 172,108 professional traders liquidated, the largest short-side loss on Bitcoin since 2021 per CoinGlass.

How did the rally affect Strategy's Bitcoin holdings?

Strategy's 840,447 Bitcoin, at an average cost of $75,385, moved to a $1.4 billion unrealized gain at $77,200, a $14.4 billion book-value swing from its $13 billion loss at June's $58,000 low.

How far is Bitcoin's current price from its all-time high?

At $77,200, Bitcoin sits 63% below its all-time high of $126,198 reached on October 6, 2025, and 25% above its year-to-date low of $58,000.