Summary
- Bitcoin recovered the $80,000 level for the first time in nearly three months and posted a 25.8% gain over the past seven days.
- US spot Bitcoin ETFs recorded $1.92 billion in net inflows last week, helping drive the rally.
- The US Treasury's expanded bond buybacks and President Donald Trump's push for passage of a crypto market structure bill acted as a strong catalyst for Bitcoin's rise.
Forecast Trend Report by Period
Bitcoin reclaimed the $80,000 mark for the first time in nearly three months, helped by inflows into spot exchange-traded funds and an expanded US Treasury bond buyback program.
Cointelegraph reported on Aug. 25 that Bitcoin climbed as high as $81,160 during the session, topping $80,000 for the first time since mid-May. It has risen about 25.8% over the past seven days, according to CoinGecko data, marking its strongest weekly gain in more than two years.
Inflows into US spot Bitcoin ETFs were cited as a key driver. The funds drew net inflows of $1.92 billion last week.
Fabian Dori, chief investment officer at Sygnum Bank, told Cointelegraph that this week's advance was driven by spot demand and institutional inflows through ETFs rather than pure leverage. Rallies built on that kind of foundation tend to be more durable than gains led by futures positions, he added.
A policy shift by the US Treasury also supported the rally. The Treasury said it would at least double the size of its bond buybacks aimed at supporting liquidity in longer-dated Treasuries, increasing them to $4 billion per operation. President Donald Trump also urged Congress at a White House event to pass a crypto market structure bill.
Gautam Chhugani, an analyst at Bernstein, called the Treasury's expanded buybacks a "strong catalyst" for Bitcoin's rise. Bitcoin has historically responded positively during periods of expanding liquidity, he told Cointelegraph.
