Bitcoin jumped nearly 25% last week and moved above $80,000, marking its strongest weekly performance in more than three years. Strong ETF inflows and the U.S. Treasury’s bond buyback announcement accompanied the surge.
Yet exchange data also showed another important feature of the move. Bitcoin market liquidity remained high as prices climbed from about $64,000, indicating that large orders continued trading against substantial available depth.
CoinDesk Research data showed an average of 0.5% market depth near $9.6 million on Aug. 18. The measure tracks combined buy and sell orders within 0.5% of Bitcoin’s market price. That level closely matched the roughly $9 million recorded on Jan. 1, when Bitcoin traded near $88,000. It also exceeded October’s $8 million level, despite Bitcoin trading above $120,000 then.
By Aug. 25, when Bitcoin reached $80,000, the 0.5% depth had eased to about $8.7 million. Still, CoinDesk Research described that change as normal snapshot variation rather than meaningful liquidity deterioration.
Could that depth help distinguish broad demand from a rally driven by only a few oversized orders? The 1% and 2% depth measures showed a similar pattern. CoinDesk Research said liquidity near the top of exchange order books remained broadly stable throughout Bitcoin’s advance.
The market move also followed strong Bitcoin ETF inflows, adding another source of demand during the recovery. Meanwhile, the Treasury’s bond buyback announcement added another catalyst as investors watched U.S. fiscal conditions.
Bitcoin’s performance came as concerns about U.S. debt and deficits returned to market discussions. Investors including Stanley Druckenmiller and Ray Dalio have warned about risks surrounding America’s fiscal position.
BlackRock digital assets head Robbie Mitchnick said Bitcoin’s rebound fit its longer-term behavior during periods of weak sentiment elsewhere. He pointed to recent pressure across equities and choppy fixed-income markets.
Mitchnick said Bitcoin benefited from its distinct long-term risk and return drivers. He also described the asset as an emerging store of value rather than simply another risk asset.
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Mitchnick said debt and deficit concerns have increasingly pushed investors toward Bitcoin and gold. Those assets can attract attention when investors question the purchasing power of fiat currencies. Bitcoin has since moved below $80,000 after recording its strongest three-day rally since 2023. Even so, exchange liquidity remained substantial during the sharp advance.
August usually brings thinner trading conditions across crypto and traditional markets as Northern Hemisphere trading desks reduce activity. Despite that seasonal effect, Bitcoin’s order-book depth remained relatively stable.
Ether and Solana showed similar conditions. Their 0.5% market depth on Aug. 25 exceeded the levels recorded in October, according to the data described by CoinDesk Research.
Liquidity could also change as traders return from summer holidays. For now, the latest depth figures show that major spot exchanges maintained sizable order books throughout Bitcoin’s rapid advance.
Bitcoin’s nearly 25% weekly rally came alongside steady market depth, strong ETF inflows and the Treasury’s bond buyback announcement. Meanwhile, BlackRock’s Robbie Mitchnick linked renewed fiscal concerns with demand for Bitcoin and gold as alternative stores of value.