Bitcoin Blasts Through $80K Barrier Amid ETF Demand and Treasury Buybacks
Bitcoin's price surged above $80,000 on Tuesday for the first time since mid-May, marking its strongest weekly rally in more than two years. According to CoinGecko data, BTC traded as high as $81,160.06, resulting in a seven-day gain of approximately 25.8%.
The rally was fueled by renewed demand through US spot Bitcoin exchange-traded funds (ETFs), which drew $1.92 billion in net inflows last week. Fabian Dori, chief investment officer at Sygnum Bank, attributed the strength to fundamental spot demand and allocator flows through ETFs, stating that 'rallies built on that base tend to be more durable than ones driven by crowded futures positioning.'
The US Treasury's decision to increase the maximum size of its long-end liquidity-support buybacks to $4 billion per operation also contributed to the price rise. Bernstein analysts led by Gautam Chhugani described this decision as the 'strong trigger' for Bitcoin's growth, noting that the cryptocurrency has historically responded positively to liquidity expansion.