Bitcoin Roars Past $80K as ETF Demand and Treasury Buybacks Fuel Rally

Bitcoin surged past $80,000 on Tuesday for the first time since mid-May, marking its strongest weekly rally in over two years. According to CoinGecko data, Bitcoin (BTC) traded as high as $81,160.06, with a seven-day gain of about 25.8%. The rally coincided with increased demand through US spot Bitcoin exchange-traded funds (ETFs), which drew $1.92 billion in net inflows last week.

Fabian Dori, chief investment officer at Sygnum Bank, attributed the strength to fundamental spot demand and allocator flows through ETFs rather than pure leverage, stating that rallies built on this base tend to be more durable. The US Treasury's decision to double the maximum size of its long-end liquidity-support buybacks to $4 billion per operation was also seen as a key trigger for Bitcoin's rise.

Bernstein analysts led by Gautam Chhugani described the Treasury decision as the 'strong trigger' for Bitcoin's increase, noting that the cryptocurrency has historically responded positively to liquidity expansion. While no specific predictions were made, the Treasury's move is expected to have a significant impact on markets in the coming weeks.