Bitcoin Rallies Past $81,000 on Treasury Buyback and ETF Inflows

Bitcoin has surged past $80,700 on Tuesday, up around 5% over the last 24 hours and more than 25% in a week.

The rally began mid-last week and is now testing resistance at the upper edge of its May trading range, with prices briefly breaching $81,000.

The catalyst for this surge lies in the U.S. Treasury's announcement on August 19 to double the size of its liquidity support buyback operations for longer-dated government bonds.

This change takes effect September 9 and runs through November 4, with bond yields lowering within hours and reviving appetite for risk assets like Bitcoin.

A subsequent short squeeze saw more than $4 billion in bearish crypto positions liquidated over the following days.

Bitcoin exchange-traded funds (ETFs) have also absorbed this momentum, with U.S. funds pulling in a record $1.92 billion in net inflows for the week ending August 21.