Bitcoin records largest weekly dollar gain in history; Strive CEO predicts 'strongest' cycle ever

Bitcoin has delivered one of its strongest weekly performances on record, adding approximately $14,264 to finish the week at $77,387. The move represents a 22.7% increase over seven days and marks Bitcoin’s largest weekly gain measured in dollar terms.

The latest rally has significantly improved market sentiment. Following the U.S. Treasury Department’s announcement of an expansion to its buyback program, investor interest in Bitcoin has shifted from caution toward renewed enthusiasm. The Crypto Fear & Greed Index climbed to 78, placing the market close to the “extreme greed” category and marking its highest reading since December 2024.

Bitcoin ETF Inflows Signal Stronger Investor Demand

Growing optimism is also visible in the U.S. spot Bitcoin ETF market. During the trading week that ended August 21, spot Bitcoin ETFs recorded approximately $1.92 billion in combined net inflows, according to SoSoValue data.

The figure represents the strongest weekly inflow since the peak of the previous bull-market cycle in October 2025. Strong ETF demand could indicate that institutional and traditional-market investors are increasing their exposure to Bitcoin as its price momentum strengthens.

Matt Cole, Chairman and CEO of Strive, believes Bitcoin’s recent performance compared with both the U.S. dollar and gold could indicate the beginning of an exceptionally strong market cycle. He argues that Bitcoin is increasingly benefiting from broader demand for scarce assets.

Scarcity Narrative Gains Momentum

The growing interest in Bitcoin is also connected to the broader scarcity narrative. As artificial intelligence contributes to an environment of increasing digital abundance, investors may place greater value on assets with limited supply.

Cole suggested that this trend could direct additional capital toward scarce monetary assets, including Bitcoin, gold, and silver.

Bitcoin’s performance against gold has also strengthened. According to Longtermtrends data, the Bitcoin-to-gold ratio currently stands at approximately 16.73 ounces of gold per Bitcoin, representing its highest level since May.

Cole highlighted Bitcoin’s recent breakout against both the U.S. dollar and gold as an important development. Strong relative performance could help Bitcoin attract a larger share of incremental liquidity if investors continue favoring scarce assets.

Although Cole expects the possibility of a short-term correction, he remains highly optimistic about Bitcoin’s longer-term outlook. He believes potential dips could attract buyers looking to increase their exposure.

Analysts Expect Momentum to Continue

Other market observers also see room for Bitcoin’s recent advance to continue, although some consolidation could occur along the way.

Dominick John, an analyst at Zeus Research, expects short-term momentum to remain supported by renewed Bitcoin ETF inflows and improving liquidity conditions. He also pointed to potential progress surrounding the CLARITY Act in September as a factor that could strengthen institutional confidence in the cryptocurrency market.

At the same time, John expects some mid-term consolidation before Bitcoin potentially begins another upward move.

BTC Markets crypto analyst Rachael Lucas emphasized that investors should look beyond the size of Bitcoin’s weekly gain and examine the factors responsible for the rally. According to her assessment, moves of this magnitude can result from several forces working together, including short covering, spot-market demand, and derivatives positioning.

Spot Demand Could Determine the Rally’s Strength

One of the key questions for the market is whether Bitcoin’s rally is being supported primarily by genuine spot demand or amplified by leverage.

A rally driven by spot purchases generally provides a stronger foundation for sustained upside because it reflects direct buying activity. In contrast, a move heavily dependent on leveraged positions can become vulnerable to sharp reversals if traders begin closing positions.

Lucas suggested that Bitcoin ETF flows could provide an important indication of whether institutional demand is keeping pace with the market’s improving sentiment. Because ETF flow figures can lag price movements, investors may need to monitor the data over several sessions to determine whether demand is persistent.

Leverage and Macro Risks Remain

Despite the bullish outlook, Bitcoin’s rapid rise has introduced several risks that traders are watching closely.

Derivatives metrics such as funding rates and open interest could reveal whether excessive leverage has accumulated during the rally. Elevated funding rates and rapidly increasing open interest following a sharp price move can sometimes signal that the market is becoming vulnerable to a leveraged correction.

Macroeconomic developments are another factor that could influence Bitcoin’s next move. A more hawkish shift in interest-rate expectations or renewed strength in the U.S. dollar could reduce risk appetite and limit Bitcoin’s near-term upside.

Nevertheless, ordinary profit-taking and increased volatility following a major rally do not necessarily indicate that the broader bullish trend has ended. Periodic pullbacks can form part of the price-discovery process as traders lock in gains and new buyers enter the market.

Bitcoin Eyes $80,000 and Higher Levels

With Bitcoin already approaching the $80,000 mark, the next major test for the market will be whether the cryptocurrency can reclaim and sustain that level.

If Bitcoin successfully establishes support above $80,000 while ETF inflows and broader liquidity remain favorable, analysts see the possibility of further gains toward $85,000-$90,000. Under particularly supportive market conditions, the cryptocurrency could potentially target the $100,000 level.

For now, the combination of record weekly gains, strong Bitcoin ETF inflows, improving investor sentiment, and growing interest in scarce assets has strengthened the bullish narrative surrounding Bitcoin. However, traders will continue watching ETF flows, derivatives activity, leverage, interest-rate expectations, and dollar strength to determine whether the current rally can develop into a sustained upward trend.

Voice Of Osiz

Bitcoin’s latest rally highlights how quickly market sentiment can shift when institutional demand, liquidity, and broader macro narratives align. The combination of strong spot Bitcoin ETF inflows, improving investor confidence, and Bitcoin’s strengthening performance against traditional scarce assets indicates growing interest in crypto as a long-term digital asset class.

From Osiz’s perspective, the most important takeaway is that market momentum should be evaluated beyond price action alone. ETF flows, spot demand, derivatives positioning, funding rates, liquidity conditions, and macroeconomic developments will be critical in determining whether Bitcoin’s current strength develops into a sustainable upward trend.

The growing scarcity narrative is particularly notable as AI and digital technologies continue to drive greater digital abundance. Bitcoin’s fixed supply and decentralized structure continue to position it differently from assets that can be expanded through centralized monetary or technological systems. At the same time, investors should remain mindful that rapid price appreciation can bring increased volatility and leverage-related risks.

As Bitcoin approaches key psychological levels, sustained institutional participation and healthy spot-market demand could play an important role in supporting further growth. At Osiz, we believe the convergence of blockchain innovation, institutional adoption, and evolving digital-asset infrastructure will continue shaping the next phase of the crypto market.

Source: Theblock.co