Bitcoin Rockets Towards $80k on Strong Institutional Demand

Bitcoin has been on a tear lately, surging 20% in its strongest weekly performance in more than two years. The price has been driven by improving liquidity expectations, lower regulatory risk premiums, and stronger institutional demand. A combination of Treasury Secretary Scott Bessent's announcement to increase purchases of longer-dated Treasuries, the US government debt exceeding $40 trillion, and President Trump's push for clearer rules around digital assets also contributed to the move.

Short covering added fuel to the rally, with Bitcoin ETFs recording $1.92 billion in net inflows last week, their strongest weekly inflows since early October. However, as Bitcoin approaches $80k, several key events this week could determine whether the rally has further to run.

The Federal Reserve's preferred measure of inflation, US core PCE, will be released on Wednesday, with expectations for the annual rate to remain at 3.3%. A hotter reading or hawkish Fed message could send yields and the dollar higher, putting the rally under pressure.