Bitcoin Surges Past $80,000 as Traders' Bets Are Forced Out
Bitcoin has reclaimed the $80,000 mark after a dramatic price surge. The rally comes as traders who had bet against Bitcoin saw their positions closed out for them, with around $4 billion in short sales being force-closed.
The sudden reversal of fortune is attributed to institutional money pouring back into the market, with US spot Bitcoin exchange-traded funds (ETFs) taking in a staggering $232.2 million on August 26 alone. BlackRock's iShares Bitcoin Trust was the largest beneficiary, receiving around $200.8 million.
However, not all analysts agree that institutional money is driving the rally. Some argue that the move manufactured its own buyers by forcing bears to cover their positions, with the resulting buying activity artificially propping up the price.