Bitcoin climbed from roughly $64,000 on August 18 to above $80,000 by August 25, a gain of about 24%, according to CoinGecko data. The advance followed a rise of more than 20% over three days last week — Bitcoin's largest three-day gain since 2023.

CoinDesk Research examined whether the rally was accompanied by stable order-book liquidity. Its data showed that average 0.5% market depth across major spot exchanges remained broadly stable throughout the climb (source: CoinGlass). The CoinDesk report noted that August is typically the thinnest month for liquidity in both crypto and traditional finance, as trading desks scale back during the Northern Hemisphere summer.

Renewed inflows into US spot Bitcoin exchange-traded funds, improving risk appetite and short covering all contributed to the rally. This week alone, just over $900 million has flowed into BTC ETF products, underscoring how quickly institutional demand can affect spot trading when liquidity is seasonally thinner.

Bitcoin Liquidity Check: What Stable Order-Book Depth Shows

$BTC has a huge sell order at $80,500. Looks like a correction is coming next. pic.twitter.com/YIz2DKmMoF

— Ted (@TedPillows) August 27, 2026

According to CoinDesk, market depth measures the value of buy and sell orders within a certain percentage of the current price. CoinDesk Research recorded 0.5% Bitcoin depth of about $9.6 million on August 18, when Bitcoin began rising from around $64,000. By August 25, as Bitcoin reached $80,000, that figure had slipped to roughly $8.7 million — a decline the report characterized as normal variation rather than a significant decrease.

The report noted that the August 18 depth was comparable to about $9 million on January 1, when Bitcoin traded around $88,000, and to $8 million in October, when it exceeded $120,000. The findings for Ethereum and Solana showed similar trends. Overall, the stable top-of-book liquidity suggested that demand was absorbed during the price rise, offering a useful check on how orderly the move was while prices advanced.

ETF Inflows and Short Covering Added Momentum to Bitcoin's Rally

US spot Bitcoin ETFs attracted $1.92 billion in net inflows last week, their largest weekly haul since October, when Bitcoin reached its previous cycle peak, according to CNBC. CNBC described the inflows as a return of institutional demand.

Short covering added further buying pressure as prices rose. CNBC reported that more than $4 billion in bearish crypto positions were liquidated during the rally, forcing traders with losing short positions to close them.

Fundstrat, in a note cited by CNBC, said the buying that followed the short squeeze suggested the rally may be more durable than a tactical bounce. The firm pointed to strong inflows into Bitcoin and Ethereum ETFs, increased trading activity, more stablecoin creation and options-market positioning toward gains further into the future.

Fundstrat also noted that Bitcoin rose without fresh purchases from Strategy, the world's largest corporate holder of the cryptocurrency, which had not bought Bitcoin for two weeks.

The Rally's Next Test Is Whether Demand Holds

CNBC reported that questions remain over whether the breakout can last. Bitcoin had been in a prolonged slump since October, and BTIG noted that a similar surge in January 2023 initially faded before Bitcoin found support around its 200-day moving average.

ETF flows, short-liquidation activity and the order-book measures tracked by CoinDesk Research offer different ways to assess the rally. Continued ETF demand would remain a key factor in CNBC's reporting, while CoinDesk Research's 0.5% market-depth measure provides insight into whether liquidity on major spot exchanges remains broadly stable.

Neither source establishes a specific price target. Taken together, the reported ETF inflows, short-covering activity and market-depth data frame the debate over whether Bitcoin's move above $80,000 reflects demand that can persist after the immediate effects of the short squeeze fade.