---
title: "Bitcoin Surges 20% in Five Days as $4bn Short Squeeze Drives Rally"
publisher: "Share Talk"
author: "sharetalk"
published: "2026-08-21T12:03:49+00:00"
modified: "2026-08-21T12:07:05+00:00"
date: 2026-08-21
canonical: "https://www.share-talk.com/bitcoin-surges-20-in-five-days-as-4bn-short-squeeze-drives-rally/"
category: "Fintech"
categories: ["Fintech", "Technology", "Technology, Media & Telecoms"]
tags: ["Bitcoin", "BTC", "cryptocurrency", "short squeeze"]
image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/08/af78cd4a-f3b7-496b-97df-a8de45a4ee42.png?fit=1726%2C911&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# Bitcoin Surges 20% in Five Days as $4bn Short Squeeze Drives Rally

**Published:** August 21, 2026
**Author:** sharetalk
**Categories:** Fintech, Technology, Technology, Media & Telecoms
**Tags:** Bitcoin, BTC, cryptocurrency, short squeeze
**Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/08/af78cd4a-f3b7-496b-97df-a8de45a4ee42.png?fit=1726%2C911&quality=80&ssl=1)

---

[Bitcoin](https://www.share-talk.com/bitcoin-eyes-72500-after-1bn-short-squeeze-sparks-8-rally/)** jumped more than 8% to around $78,150 on Friday**, putting the cryptocurrency on course for its strongest weekly gain since March 2024.

The world’s largest digital asset reached an intraday high of **$79,194**, having traded below $64,000 earlier in the week. Bitcoin is now up roughly **20% over the past five sessions**.

The rally has been supported by improving sentiment in the US, including President Donald Trump’s call for lawmakers to advance the **Clarity Act**, which is intended to provide a clearer federal regulatory framework for digital assets.

Institutional demand has also strengthened through **spot Bitcoin exchange-traded funds**, adding further support to the move.

Sentiment was boosted further by the US Treasury’s decision to expand purchases of longer-dated government debt. While the measure is not quantitative easing, investors initially interpreted it as supportive of liquidity and potentially lower borrowing costs.

A major short squeeze then accelerated the rally. More than **$4 billion of bearish cryptocurrency positions have reportedly been liquidated over the past two days**, including around $1 billion on Friday across the broader crypto market.

---

**Original URL:** https://www.share-talk.com/bitcoin-surges-20-in-five-days-as-4bn-short-squeeze-drives-rally/
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