Bitcoin Roars Past $78k as Bulls Eye $80k
Bitcoin's price surged to $78,600 on Monday, marking a 2% increase over the previous 24 hours and extending last week's 20% rally. This strong performance is the cryptocurrency's best in over two years.
The weekly rally was fueled by improving liquidity expectations, stronger institutional demand, a more favorable regulatory outlook, and widespread short covering. The announcement by US Treasury Secretary Scott Bessent that the Treasury would increase purchases of longer-dated government debt also contributed to Bitcoin's upward move.
This event helped lower long-term bond yields and improved investors' appetite for risk assets. Additionally, the renewed push for clearer digital asset rules by President Donald Trump reduced the perceived risk of investing in cryptocurrencies, making it easier for traditional financial institutions to increase their exposure.
The combination of exchange-traded fund (ETF) demand and short covering amplified Bitcoin's upward move as traders betting on lower prices were forced to close their positions. US spot Bitcoin ETFs recorded $1.92 billion in net inflows last week, their strongest weekly total since early October.