Bitcoin Faces Crucial $80,000 Test as Appetite for Risk Grows

Bitcoin has reached its highest level since May, trading near $78,000 after climbing to as high as $79,400.

The largest cryptocurrency is facing a test at $80,000 before trading in exchange-traded funds (ETFs) shuts for the weekend.

A lower-than-expected CPI print and weaker payrolls data followed the U.S. Treasury's announcement of plans to bring down long-dated bond yields, fueling appetite for risk.

According to CoinShares' head of research, James Butterfill, Bitcoin remains acutely sensitive to shifts in liquidity expectations and real yields.