Bitcoin Magazine

Bitcoin Slips After $3 Billion ETF-Driven Rally

Bitcoin fell on Friday afternoon, easing after a strong run fueled by heavy buying from U.S. exchange-traded fund investors.

The leading cryptocurrency was trading at $77,379 on Friday afternoon in New York, down more than 3% over the previous 24 hours. Earlier this week, bitcoin reached a high of $81,281 before losing momentum after Federal Reserve Chair Kevin Warsh delivered his first major speech as head of the central bank and said on Friday that he had “more work to do” to bring inflation under control.

Bitcoin has previously declined when the Federal Reserve signals that inflation remains elevated, as that typically reduces the likelihood of an interest rate cut. The cryptocurrency generally performs better in a lower-interest-rate environment, and markets conventionally look to the Fed’s rate-setting meetings, held roughly every six weeks, alongside monthly inflation data for the next signals on that path.

JUST IN: U.S. Bitcoin ETFs have brought in $1.14 billion in inflows this week. Over $3 billion has been added in the past 9 days! pic.twitter.com/ri1jE7enTZ — Bitcoin Magazine (@BitcoinMagazine) August 28, 2026

Bitcoin’s latest rally began last week after the U.S. Treasury said it would at least double the size of its liquidity-support buyback operations. The announcement weighed on the dollar, while non-yielding assets benefited.

According to Farside Investors data, exchange-traded funds managed by firms including BlackRock, Fidelity, and Grayscale have recorded net positive inflows for nine consecutive days. Last week was their strongest week since October, when bitcoin reached a new all-time high, and the trend has continued into this week. U.S. spot bitcoin ETFs have traded since their regulatory approval in January 2024, and the daily flows that Farside tracks have since become one of the most closely watched gauges of American investor demand for the cryptocurrency.

Since August 17, investors have poured more than $3 billion into the funds. BlackRock’s iShares Bitcoin Trust captured the largest share of the inflows, while Morgan Stanley’s new Bitcoin Trust, which launched this year, also saw significant investment.

Analysts have said the so-called debasement trade, in which investors buy assets as a hedge against currency devaluation, has been drawing renewed attention to bitcoin. Investors participating in that trade view bitcoin, gold, and other precious metals as potential protection against excessive government spending.

Total U.S. debt crossed $40 trillion for the first time this month.

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