Bitcoin Storms Past $78,700 as ETF Inflows Fuel Record-Breaking Rally

Bitcoin's price surged to nearly $80,000 this week after its largest weekly dollar gain on record. The cryptocurrency jumped by over 22.7% in a single week, reaching a new milestone and breaking previous records.

The sharp increase was driven by renewed institutional buying and a shift in US Treasury policy. On August 19, the US Treasury announced that it would double its maximum liquidity-support buybacks for longer-dated Treasury securities from $2 billion to at least $4 billion from September 9.

This move initially pushed down long-term yields and weakened the US dollar, creating a favorable environment for Bitcoin and other assets viewed as alternatives to traditional fiat currencies. As a result, Bitcoin's price jumped from below $65,000 on August 18 to almost $80,000 within days.

Ethereum also saw significant gains, rising by around 30% over the past week to approximately $2,475. Solana and XRP showed mixed performance, with Solana increasing by roughly 2% while XRP dropped by 2.5%. The key test for Bitcoin's rally is now whether it can break above the psychologically important $80,000 level.