Bitcoin Soars Above $79,000 as Washington and Wall Street Fuel Rally
Bitcoin surged above $79,000 on Friday as institutional buying and improving macro conditions merged with reduced regulatory risk in Washington. Analysts say this rally is not new, but a culmination of factors that began taking shape before the latest breakout.
Lacie Zhang, research analyst at Bitget Wallet, says three forces are driving the price up: a more supportive economic environment, weakening regulatory uncertainty, and increasing spot demand. The US Treasury's expanded long-dated buyback plan has weakened the dollar, while Trump's push for crypto market-structure legislation has reduced regulatory risk.
The third piece of this puzzle is spot demand, which has been reflected in renewed ETF buying. U.S. spot Bitcoin ETFs saw $517 million and $606 million in net inflows on August 19 and 20, respectively, while the break above $70,000 forced short covering and pulled momentum buyers back in.