Bitcoin surged through $74,000 and subsequently crossed $75,000 as the cryptocurrency market extended its sharp recovery into Friday, with Ether following higher toward $2,400 and leveraged short sellers suffering another round of forced liquidations.
Bitcoin briefly traded above $75,500 before settling near $75,000 during Asian trading on August 21, according to CoinDesk. The cryptocurrency was up roughly 8% over 24 hours and approximately 18% for the week, after trading near $64,100 only two days earlier.
Ether climbed to approximately $2,376, gaining nearly 5% over 24 hours and roughly 25% over the week. ETH has now recovered substantially from levels below $1,900 earlier this week, while XRP and Solana also participated in the broader rally.
The move extends one of crypto’s strongest multi-day advances of 2026 and has taken Bitcoin to its highest level since late May.
Short Sellers Lose More Than $4 Billion
Forced liquidations have played a major role in accelerating the rally. Approximately $1 billion of crypto short positions were liquidated over the latest 24-hour period, according to CoinGlass data cited by CoinDesk, bringing bearish liquidations over the two-day surge above $4 billion.
More than 140,000 traders were liquidated during the latest 24-hour period, with roughly $1.23 billion of positions closed overall. Shorts accounted for around $1 billion of that amount.
The previous session had already produced an exceptional derivatives unwind. Nearly $3 billion of positions were liquidated across more than 172,000 traders, with short positions accounting for approximately 92% of the total.
Liquidations can reinforce an upward move because exchanges automatically close leveraged bearish positions when collateral becomes insufficient, effectively creating additional market buying.
Bitcoin’s breakout above $69,000 also carried technical significance because that area corresponded approximately with its 200-day moving average. BTC subsequently cleared $70,000, $74,000 and $75,000 in rapid succession.
ETF Demand Adds Spot Buying Behind the Rally
Unlike a rally driven exclusively by leverage, the latest move has coincided with substantial demand through U.S. spot ETFs.
Bitcoin ETFs attracted $606.3 million of net inflows on August 20, following $517.2 million on August 19. BlackRock’s IBIT accounted for $503 million of Thursday’s total, while Fidelity’s FBTC added $64.7 million. Ether ETFs simultaneously attracted $219.5 million on August 20, led by $173.3 million flowing into BlackRock’s ETHA.
Macro and regulatory developments have provided additional support. The U.S. Treasury’s decision to increase purchases of longer-duration government debt helped push yields lower, while President Donald Trump’s renewed support for cryptocurrency market-structure legislation improved sentiment toward the sector.
Trump met crypto executives alongside SEC Chairman Paul Atkins and CFTC Chairman Michael Selig at the White House this week and urged Congress to advance the CLARITY Act. The combination has transformed the market rapidly. Bitcoin has moved from approximately $64,000 to above $75,000 in roughly two days, while Ether has advanced from below $2,000 to nearly $2,400.
The scale of forced short covering means some of the rally is mechanically driven, however, leaving sustainability dependent on whether spot and ETF demand continues after bearish leverage has been cleared.
For Bitcoin, $75,000 now represents the immediate battleground. Holding above that level would consolidate the strongest breakout since May, while Ether’s approach toward $2,400 provides another indication that capital is spreading beyond Bitcoin into the broader crypto market.