Bitcoin Breaks $80,000 Mark Amid ETF Surge and Weakening Dollar

Bitcoin has broken through the $80,000 mark for the second time this year, driven by a surge in investment into exchange-traded funds (ETFs) and a weakening U.S. dollar. According to Fixygen, the rally was fueled by a significant influx of capital into regulated ETFs, with net inflows totaling approximately $2.57 billion over seven consecutive trading days.

The BlackRock iShares Bitcoin Trust remains the primary recipient of these funds, with cumulative net inflows exceeding $62.9 billion since its launch. This strong momentum was further amplified by the closure of short positions, which added mechanical demand for Bitcoin.

In a notable shift from previous cryptocurrency cycles, the current demand is increasingly becoming part of the same macroeconomic narrative as gold, with investors buying assets whose supply cannot be increased by a central bank or government decision. The difference lies in volatility, however, with Bitcoin being a high-risk, highly volatile bet on the weakening of the dollar's purchasing power.