Bitcoin Price Falters Below $80K as Forced Buying Fades

Bitcoin's price rally has stalled below $80,000 after surging more than 20% last week. The cryptocurrency reached its highest level in about three months on Friday at roughly $79,500.

The explosive gains were fueled by Treasury bond buybacks, a weaker dollar, ETF demand, regulatory optimism, and a historic short squeeze. However, the market is now facing a different test as the forced buying that powered the initial rally fades.

According to MEXC Research chief analyst Shawn Young, the Treasury's intervention has 'opened a pressure valve,' but crypto markets priced it like a broader change in monetary conditions. Zeus Research analyst Dominick John agrees, stating that once crowded short positions are cleared, the rally must stand on its own through fresh spot demand and stronger fundamentals.

While US spot Bitcoin ETFs attracted $1.9 billion in net inflows last week, their strongest weekly total of 2026, the question remains whether this demand can persist after such a rapid price rise.