Bitcoin Surges Above $79k as Institutional Demand Fuels Rally

Bitcoin's price surged above $79,000 on Friday as institutional demand and improving macro conditions pushed the cryptocurrency sharply higher. The rally was fueled by a combination of factors, including the Treasury's expanded long-dated buyback plan, which weakened the dollar and revived the 'debasement trade' across Bitcoin and gold.

According to Lacie Zhang, research analyst at Bitget Wallet, the forces driving the rally include a more supportive macro backdrop, declining regulatory risk in Washington, and stronger spot demand. The Treasury's buyback plan has reduced investor appetite for traditional assets, boosting demand for Bitcoin as a safe-haven asset.

U.S. spot Bitcoin ETFs saw significant inflows over two days, with roughly $1 billion invested in the funds. This surge in institutional buying was accompanied by short liquidations, with an estimated $4 billion in crypto shorts being closed out over a three-day period.