Bitcoin Reclaims $80,000 as ETF Inflows and Treasury Buyback Expansion Fuel Rally
Key Takeaways
- •Bitcoin traded above $80,000 for the first time since mid-May and posted a seven-day gain of about 25.8%.
- •US spot Bitcoin ETFs recorded $1.92 billion in net inflows last week, indicating renewed demand from institutional and wealth-adviser channels.
- •The US Treasury said it would raise the maximum size of its long-end liquidity-support buybacks to $4 billion per operation from $2 billion.
- •President Donald Trump urged Congress to pass crypto market structure legislation aimed at clarifying digital asset oversight and classification.
- •Bernstein analysts said the Treasury action was a strong catalyst for Bitcoin’s move and noted that the market is now watching ETF inflows and legislative progress.
Bitcoin climbed back above $80,000 on Tuesday for the first time since mid-May, extending its strongest weekly rally in more than two years.
Bitcoin (BTC) traded as high as $81,160.06, bringing its seven-day gain to about 25.8%, according to CoinGecko data.
The advance coincided with renewed demand through US spot Bitcoin exchange-traded funds (ETFs), which drew $1.92 billion in net inflows last week. Since US regulators approved the products in January 2024, the ETFs have become a main conduit for institutional and wealth-adviser access to Bitcoin, and their weekly flows are tracked as a barometer of mainstream demand.
"This week's strength has been led by fundamental spot demand and allocator flows through ETFs rather than by pure leverage, and rallies built on that base tend to be more durable than ones driven by crowded futures positioning," Fabian Dori, chief investment officer at Sygnum Bank, told Cointelegraph.
Policy developments added further momentum. On Wednesday, the US Treasury said it would at least double the maximum size of its long-end liquidity-support buybacks to $4 billion per operation, up from the previous $2 billion cap. The buybacks, which the Treasury has conducted regularly since 2024, are used to support trading conditions in older, off-the-run securities, and the expansion adds to the liquidity backdrop that Bernstein flagged. President Donald Trump, speaking at a White House event, also urged Congress to pass crypto market structure legislation, a bill aimed at settling long-running questions over how digital assets are classified and which agencies oversee them.
Bernstein analysts led by Gautam Chhugani described the Treasury decision as the "strong trigger" for Bitcoin's rise, noting that the cryptocurrency has historically responded positively to liquidity expansion. The focus for markets now shifts to whether weekly ETF inflows persist and whether the market structure legislation advances in Congress.
