Bitcoin Soars Past $80,000 Amid Short Squeeze and ETF Inflows
Bitcoin's price has broken through $80,000 after a 100-day journey, reaching $80,700 on OKX. The surge in BTC's price is accompanied by gains of up to 25% in the past week, while Ethereum (ETH) has also seen significant growth, breaking through several key resistance levels and currently trading at around $2,500.
The ETH/BTC ratio has touched a multi-month high of 0.0334 since February this year. The altcoin market is also experiencing widespread gains, with SOL returning to the $100 level and HYPE setting a new all-time high of over $83.
Market analysts are divided on whether this is the start of a new bull run or just a technical rebound driven by short covering. The crypto Fear and Greed Index has approached 'Extreme Greed' territory, with 74 as its current reading, marking its highest level since December 2024.
The US Treasury's announcement to expand its buyback program is seen as a contributing factor to the market's momentum. According to SoSoValue data, US spot Bitcoin ETFs recorded net inflows of $1.92 billion for the week ending August 21, while Ethereum spot ETFs attracted $2.6 billion in net inflows combined with trading volume tripling compared to previous weeks.
Strive CEO Matt Cole believes this is 'the strongest cycle in history', citing Bitcoin's relative strength against the dollar and gold as evidence of a structural shift toward scarce assets like gold, silver, and Bitcoin.