Bitcoin Rally Faces Crucial Test Above $80,000
Bitcoin's price surge has reached its strongest weekly advance since March 2023, pushing the asset close to $80,000. The cryptocurrency climbed from below $64,000 on August 19 to approximately $79,550 during the rally, a gain of roughly 24% over the week.
The US Treasury's announcement that it would at least double the maximum size of its liquidity-support buybacks for nominal Treasury securities with maturities of 10 to 30 years helped trigger the move. The operations will increase from a maximum of $2 billion to at least $4 billion each, beginning September 9.
Approximately $1.9 billion flowed into US spot Bitcoin ETFs during the week ending August 21, providing evidence of genuine investor demand. Record short liquidations added further momentum to the rally.