Bitcoin Surges Past $80,000 as Bond Yields and ETF Demand Drive Rally
Bitcoin's price surged to its highest level since May, reaching nearly $80,000 after a 24% weekly gain. The rally was driven by several factors, including increased demand for US spot Bitcoin ETFs and changes in Treasury buybacks policy. Analysts believe that further gains are dependent on easing US bond yields, sustained ETF inflows, and progress on the CLARITY Act.
US spot Bitcoin ETFs recorded approximately $1.9 billion in net inflows last week, with five consecutive trading days of inflows. This influx of capital is seen as evidence of genuine investor demand, rather than just forced buying in derivatives markets.
Jeff Mei, chief operating officer of crypto exchange BTSE, believes that Bitcoin could establish a range between $80,000 and $90,000 if the Treasury expands its buybacks and the CLARITY Act makes material progress by mid-September. However, he also warns that without further positive catalysts, it's possible for Bitcoin to give back recent gains and fall again to the $70k mark.