Washington's Shift Bolsters Bitcoin Above $79,000
Bitcoin's price surged above $79,000 on Friday as a combination of factors contributed to its rally. The cryptocurrency saw significant inflows from U.S. spot Bitcoin ETFs, with net inflows totaling over $1 billion over two days.
Lacie Zhang, research analyst at Bitget Wallet, attributed the move to three converging forces: a supportive macro backdrop, declining regulatory risk in Washington, and stronger spot demand.
Zhang noted that the Treasury's expanded long-dated buyback plan weakened the dollar and revived the 'debasement trade' across Bitcoin and gold. Additionally, the administration of Donald Trump pushed for crypto market-structure legislation, which helped reduce regulatory uncertainty.
The third piece, spot demand, has been reflected in renewed ETF buying. According to Zhang, U.S. spot Bitcoin ETFs saw net inflows of $517 million on August 19 and about $606 million on August 20.