Bitcoin's rally accelerated on Monday, with the leading cryptocurrency flirting with $80,000 after U.S. Bitcoin exchange-traded funds had their best week since October.

Bitcoin was recently trading more than 2% higher over a 24-hour period after flying past $79,155. Earlier on Monday morning in New York, it reached as high as $79,954, putting the coin within touching distance of the $80,000 level.

Over the past week, bitcoin has risen 25% — a sharp reversal after a sluggish June and July, when it mostly traded below $65,000 and struggled to regain momentum.

ETF Investors Reverse Course

U.S. investors reversed course last week and bought up shares in the Bitcoin ETFs, which had their best week since October — the month bitcoin notched its all-time record of $126,080. Data from Farside Investors shows that the funds received $1.9 billion in new cash. The ETFs are managed by the likes of BlackRock, Fidelity, Grayscale, and Morgan Stanley.

The funds, which launched in January 2024 when the Securities and Exchange Commission approved spot Bitcoin ETFs, have since amassed more than $100 billion in combined assets, making their weekly flows one of the most closely watched barometers of institutional demand for bitcoin.

“This is one of the benefits of a commodity in a constant state of supply shock,” Bloomberg Intelligence ETF analyst Eric Balchunas wrote on X on Monday.

Bitcoin ETFs took just about $2b last week- their best week since the Good Ol Days of Oct 2025 as price went from $64k to $77k in a New York minute (that counts as God candle yeah?). Anyway, this is one of the benefits of a commodity in a constant state of supply shock. pic.twitter.com/B63AUp3G8k — Eric Balchunas (@EricBalchunas) August 24, 2026 (X)

Treasury Buybacks and a Weakening Dollar

The surge in interest in bitcoin was triggered by the U.S. Treasury Department's announcement last week that it would at least double the size of its long-dated bond buybacks. The Treasury only resumed regular buybacks of outstanding debt in 2024 — its first such operations in more than two decades — as a liquidity-management tool for older, off-the-run securities. Since the Treasury made the announcement, yields have gone down, while bitcoin and gold have shot up.

The dollar last week was trading at a three-month low and was on track for its worst week of August. Bitcoin, on the other hand, had its best week since 2023.

White House Push for the Clarity Act

Positive regulatory news coming out of the White House also helped. President Donald Trump held a meeting with crypto executives earlier last week and urged lawmakers to get the Clarity Act over the line.

Lawmakers will vote on the long-awaited crypto legislation, which the digital asset industry has long called for, in September. The proposed law will establish a framework for distinguishing between digital assets that are securities, commodities, or payment stablecoins. The House passed the market-structure bill on a bipartisan vote in July 2025, leaving the Senate as the remaining step before it can reach the president's desk. Approval would make it the industry's second landmark federal crypto law in just over a year, after Trump signed stablecoin legislation in July 2025.

Recovery From October's Slump

The rally marks a recovery from a difficult stretch for the coin. Bitcoin notched an all-time high in October but was hurt later that month after the biggest liquidation event in crypto history saw over $19 billion in bets closed. The coin continued its plunge after the Federal Reserve made it clear it was in no hurry to lower interest rates and as investors increasingly threw money at artificial intelligence-related stocks. Even at Monday's high of $79,954, bitcoin still traded more than a third below its $126,080 record.

This article was written by Mathew Di Salvo and first appeared on Bitcoin Magazine.