Bitcoin's Rally Is Shifting From Short Squeeze to ETF Demand as Inflows Hit $1.6 Billion - iShares Bitcoi

Bitcoin’s (CRYPTO:BTC) latest rally is gaining a new source of momentum: institutional demand through spot ETF.

Bitcoin climbed more than 23% over the past week to around $77,500 on Friday, while U.S. spot Bitcoin ETFs attracted roughly $1.6 billion in net inflows from Monday through Thursday, their strongest weekly showing of 2026, according to data from The Block cited by The Wall Street Journal. Thursday alone accounted for about $606 million.

The surge is important because it could signal a shift in the drivers of Bitcoin’s rebound.

From Short Squeeze To ETF Demand

The initial rally was heavily fueled by forced buying. More than $4.3 billion in crypto short positions were liquidated as Bitcoin broke higher, creating a powerful feedback loop of short covering and rising prices.