MMMBitcoin Hits $80k Amid Institutional Investment Inflows
Bitcoin's price reached $80,000 for the first time since May 15, gaining about 25% over six days of growth. Amid Ethereum's rally, it surged 32%, while short sellers incurred losses totaling $218 million.
The main driver of the rally was institutional investors, with a net inflow into US spot Bitcoin ETFs from August 17 to 21 reaching $1.92 billion. The largest daily fund inflow of $606.3 million was recorded on August 20.
Another factor was the US Treasury Department's decision to increase its long-term bond buybacks from $2 billion to $4 billion per operation. The weakening dollar triggered capital flows into assets with limited supply.
Despite the rally, Bitcoin remains 18% below its yearly peak of $98,000, and US spot ETFs are still down $2.8 billion year-to-date. The current growth is viewed as a partial return of funds previously withdrawn from the market.
