Bitcoin Soars 25% Amid Government Support and Institutional Buying

Bitcoin's price has surged by about 25% over the past week, reaching $80,000. This significant increase in value is being attributed to a combination of factors, including an initial short squeeze and government actions that may have helped prop up the digital asset.

Matt Kaufman, head of ETFs at Calamos Investments, notes that 'a lot of the price increase was more mechanical than demand-based.' He points out that recently announced Treasury buybacks for long-term debt brought down yields, which may have contributed to Bitcoin's increased value.

As often happens when prices rise, investors and traders are piling in. About $2.4 billion flowed into bitcoin ETFs last week, marking one of the best sales weeks in months. This influx of money is notable given that about $3.2 billion has poured out of digital asset ETFs year to date through July.

BlackRock's Bitcoin Trust ETF (IBIT) has reported a total of about $5 billion in creations via in-kind transactions, which allow digital asset owners to move assets into the fund without selling them on the market.