Archive · 21 Aug 2026
Bitcoin Rally Adds Rs 16 Lakh in One Week
Bitcoin rose sharply over the past week, gaining about Rs 16 lakh.
This happened as investors became more hopeful about the crypto market.
Changes involving long-term US Treasury bond buybacks may affect money flows and interest-rate expectations.
Many investors who had bet against Bitcoin were forced to close their positions, adding to the buying pressure.
More than $3 billion in short positions were liquidated in one day.
Spot Bitcoin exchange-traded funds also received their largest daily inflow since May.
Other cryptocurrencies, including Ethereum and XRP, rose as well.
Experts said the rally is important but may not continue at the same speed.
They advised investors to manage risk because prices could pause or fall after such a rapid rise.
Bitcoin recorded its strongest weekly move in more than two years, gaining about Rs 16 lakh in a week.
Short positions worth more than $3 billion were liquidated, while spot Bitcoin ETFs saw their largest single-day inflow since May.
Analysts attributed the rally to improved sentiment, macroeconomic developments, policy optimism and institutional participation.
The rally spread across the market, with major tokens gaining up to 45% and smaller tokens rising as much as 65%.
Analysts warned that continued gains depend on real spot demand, liquidity and adoption rather than short covering alone.
- Who
- Bitcoin, crypto investors, short sellers, spot Bitcoin ETF investors, and analysts including Vikas Gupta, Roshan Aslam and Avinash Shekhar.
- What
- Bitcoin and the wider cryptocurrency market posted a sharp weekly rally, with Bitcoin gaining about Rs 16 lakh.
- When
- During the week covered by the report; the article also cites market activity over the previous 24 hours.
- Where
- Global cryptocurrency markets, with commentary from India-based industry executives.
- Why
- The rally was linked to improved market sentiment, macroeconomic developments, policy optimism, institutional participation, ETF inflows and the liquidation of short positions.
Reasons for Further Gains
Reasons for Caution
What is driving the rally?
Reasons for Further Gains
Vikas Gupta and other analysts pointed to renewed sentiment, macroeconomic liquidity, policy optimism, institutional participation and spot Bitcoin ETF inflows as potential support for the market.
Reasons for Caution
Roshan Aslam said part of the move was driven by short sellers being forced out, and warned that continued gains require real spot demand rather than short covering alone.
Can the rally continue?
Reasons for Further Gains
Continued regulatory clarity, adoption, institutional participation and liquidity could help Bitcoin build on its gains, according to Vikas Gupta.
Reasons for Caution
Analysts said the rapid rise could naturally be followed by consolidation and advised staggered entries, disciplined position sizing and attention to individual risk tolerance.
- Bitcoin weekly move
- About Rs 16 lakh gained in one week; described as Bitcoin’s best weekly move in more than two years.
- Bitcoin market capitalisation
- Close to $1.6 trillion.
- Distance from record high
- Still about 37% below its nearly $126,000 all-time high reached in late October 2025.
- Short liquidations
- More than $3 billion in short positions were liquidated in one day.
- Total crypto market capitalisation
- $2.61 trillion, up nearly 8% in 24 hours.
- Total crypto trading volume
- More than $154 billion in tokens traded over 24 hours.
- Bitcoin dominance
- Above 60% of the overall crypto market.