Bitcoin Pauses at the $80,000 Threshold — Sustained ETF Inflows Hold the Key

Add to Google Preferred Sources
Bitcoin briefly touched $79,500 before consolidating near its highs. Last week, the U.S. Treasury Department’s announcement of expanded long-term Treasury buybacks drove yields lower and improved risk appetite, propelling Bitcoin more than 20% higher from the $63,000 range. A <a href="https://xpertsstudio.com/xrp-price-prediction-after-massive-30-billion-weekly-inflow/” title=”XRP price prediction after massive $30 billion weekly inflow”>massive short squeeze accelerated the rally, and U.S. spot Bitcoin ETFs saw five consecutive trading days of net inflows totaling $1.92 billion. However, Bitcoin failed to break through $80,000, and profit-taking combined with leveraged long liquidations over the weekend triggered a pullback. Analysts say the next directional move hinges on whether ETF inflows persist, regulatory progress at the SEC and CFTC, and whether the Coinbase premium turns positive again. The market is also watching the CLARITY Act process in September, the FOMC meeting, and PCE inflation data.

Key Elements

Bitcoin (BTC) briefly touched $79,500 (approximately 110 million won) before entering a consolidation phase near its highs. After surging more than 20% from the $63,000 range last week and coming within striking distance of breaking $80,000, the rally lost momentum over the weekend as profit-taking sell orders and leveraged long position liquidations converged. Analysts say the next directional move will depend on whether inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) persist and how cryptocurrency regulation evolves.

Hong Kong-based digital asset analytics firm Bitfire Research said in a research report on the 24th that “Bitcoin appears to have entered a phase of sideways movement at elevated levels after breaking through its previous price range,” attributing the recent rally to a combination of geopolitical risk, U.S. long-term Treasury yields, and cryptocurrency regulatory developments.

The starting point of this rally was the U.S. Treasury Department’s announcement of expanded bond buybacks. When the Treasury said it would more than double the maximum size of long-term Treasury buybacks from the existing $2 billion to at least $4 billion, long-term yields fell, the dollar weakened, and risk appetite improved. Bitcoin quickly approached $70,000 from the $64,000 range.

A short squeeze in the derivatives market then added fuel to the fire. Large short positions betting on Bitcoin’s decline in the $65,000–$70,000 range were liquidated in a cascade as the price broke through, triggering forced buying that in turn pushed prices higher in a self-reinforcing cycle. More than $1 billion in short positions were liquidated in the first hour alone.

After breaking above $70,000, institutional capital began flowing in earnest. From the 17th through the 21st, U.S. spot Bitcoin ETFs saw five consecutive trading days of net inflows totaling $1.92 billion (approximately 2.6 trillion won). On a daily basis, inflows were $297.5 million on the 17th, $189.3 million on the 18th, $517.2 million on the 19th, $606.3 million on the 20th, and $307.5 million on the 21st — with the pace accelerating over the period.

Note: Five-day total of approximately $1.92 billion. BlackRock’s IBIT accounted for the bulk at roughly $1.33 billion, followed by Fidelity’s FBTC, ARKB, and BITB.

Bitcoin surged to an intraday high of $79,500 on the 21st, attempting to break through $80,000, but ultimately fell short. Profit-taking sell orders flooded in near the $79,000 level, pushing the price down to $77,000, and over the weekend it fell to even lower levels before rebounding. While the pullback was only 3–4% relative to the cumulative gains, the balance in the derivatives market shifted markedly.

During the rally phase, short positions were liquidated in a cascade, amplifying buying pressure. But as Bitcoin approached $80,000, leveraged long positions surged instead. When the price reversed direction, hundreds of millions of dollars in long positions were forcibly liquidated, acting as selling pressure. The fact that U.S. ETFs were not trading over the weekend — temporarily removing one of the market’s key

On the regulatory front, Bitfire Research identified the U.S. Securities and Exchange Commission’s (SEC) proposed cryptocurrency rules, the Commodity Futures Trading Commission’s (CFTC) policy initiatives, and the future procedural steps for the CLARITY Act as key variables. If regulatory uncertainty eases, it could improve investment sentiment among institutional investors and in the tokenized financial products market, the firm said.

Market participants are closely watching the CLARITY Act process expected around September 15, the SEC’s comment period on cryptocurrency rule proposals, the September Federal Open Market Committee (FOMC) meeting, and the Personal Consumption Expenditures (PCE) price index and employment data. “Fund flows are the key factor that will determine whether this rebound develops into a sustainable medium-term uptrend,” Bitfire Research said, adding that investors should monitor whether ETF net inflows continue even at elevated Bitcoin prices, and whether the Coinbase premium — a gauge of U.S. investor spot demand — turns positive again.

Once added, BigGo Finance appears first in Google Search Top Stories, so you get the broadest, most up-to-the-minute, and most comprehensive global financial news first.

Source: finance.biggo.com