Bitcoin Reclaims $80,000 as ETF Inflows, US Treasury Buybacks Drive Rally

Bitcoin rose back above $80,000 for the first time in about three months, helped by inflows into spot exchange-traded funds and an expansion of US Treasury buybacks, according to market watchers.

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. CoinGecko data showed the token was up about 25.8% over the past seven days, its strongest weekly gain in more than two years.

Inflows into US spot Bitcoin ETFs were a key driver. The funds recorded $1.92 billion in net inflows last week.

Fabian Dori, chief investment officer at Sygnum Bank, told Cointelegraph that this week's advance was driven by spot demand and institutional money flowing through ETFs rather than pure leverage. Rallies built on that foundation tend to be more durable than moves led by futures positioning, he added.

A policy shift by the US Treasury also supported the rally. The department said it would at least double the size of its buybacks aimed at supporting liquidity in longer-dated Treasuries to $4 billion per operation. President Donald Trump also urged Congress at a White House event to pass crypto market structure legislation.

Gautam Chhugani, an analyst at Bernstein, called the Treasury's expanded buybacks a powerful catalyst for Bitcoin's rise. Bitcoin has historically responded positively during periods of expanding liquidity, he said.