Bitcoin Surges 5% Past $80,000 as Liquidity and ETF Flows Revive Forecast Hopes
The Bitcoin price surged nearly 5% above $80,000 as investors react to recent Federal Reserve and US Treasury decisions. The BTC/USD exchange rate jumped from around $77,000 to an intraday high of $81,316 on Thursday.
Liquidity and Fed relief drove the rally, with Federal Reserve Governor Christopher Waller indicating support for leaving interest rates unchanged in September. This improved risk appetite, while the US Treasury's decision to increase its purchases of longer-dated bonds brought liquidity back into focus.
eToro analyst Simon Peters stated that recent moves from the US Treasury have renewed interest in Bitcoin, historically a key beneficiary of increased market liquidity. ETF demand has also offered support, with Farside Investors recording $101.1 million of US spot Bitcoin ETF inflows on 2 September.