Bitcoin Surges on Treasury Bond Buybacks and Institutional Inflows

Bitcoin surged by 13.2% in just 24 hours to reach $77,580, while Ethereum jumped by 50% to $2,388.

The sudden price hike is attributed to three main factors: the US Treasury's decision to double its long-dated bond buybacks, the return of institutional buying through verified spot ETF inflows, and the liquidation of short positions.

James Lavish of the Bitcoin Opportunity Fund pointed out that the Treasury's move is functionally similar to quantitative easing without the label, which would explain why capital is shifting from bonds to riskier assets like Bitcoin.

The institutional bid has indeed returned, with US spot Bitcoin ETFs taking in $517 million on August 19 and $606 million on August 20, while Ethereum funds added $221 million on the same day.