Bitcoin Climbs as Spot ETF Inflows Rebound and Short Squeeze Intensifies on Clearer U.S. Rules

Huoxing Finance reported that Bitcoin has continued to grind higher on August 22, supported by a mix of fresh institutional demand, a friendlier macro backdrop, improving U.S. regulatory visibility, and a wave of short liquidations. Flows into U.S. spot Bitcoin ETFs have picked up again, drawing institutional money back into the market. Data shows net inflows of about $517 million on August 19 and roughly $606 million on August 20. CoinShares Head of Research Julio Moreno said daily ETF buying reached around 7,500 BTC, the highest level since April. Some market participants attribute part of the move to the U.S. Treasury's expansion of its long-term Treasury repurchase program, which they say has weighed on the dollar and encouraged "currency depreciation trades," pushing additional capital toward Bitcoin and gold. On the policy front, investors have taken comfort from the Trump administration's push for legislation to better structure the crypto market, easing concerns about regulatory uncertainty. At the same time, Congress is advancing proposals including the CLARITY Act, designed to delineate oversight between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) for digital assets. Analysts say Bitcoin is benefiting from a higher degree of regulatory certainty; while the bills have limited direct implications for BTC, they may lower the regulatory risk premium across the broader crypto market. The rally has also forced a rapid unwind of bearish positioning. Data shows crypto-market short liquidations exceeded $4 billion over the past two to three days, including about $2.7 billion in a single day, followed by another $1.2 billion in subsequent liquidations. Analysts described the move as among the largest short-covering episodes in recent crypto market history. Market participants said that if institutional inflows remain steady and the regulatory backdrop continues to improve, Bitcoin's medium-term uptrend is likely to hold.