Bitcoin Price Surges Past $80,000 As Spot ETF Inflows, Risk Appetite Fuel Crypto Rally

Bitcoin climbed above the $80,000 level on Tuesday as renewed institutional buying and improving sentiment toward risk assets extended the cryptocurrency’s recent recovery.

The world’s largest cryptocurrency rose more than 2% to around $80,501, building on a rally that accelerated last week.

Bitcoin had gained more than 20% over three days last week, marking its strongest three-day advance since 2023.

A major short squeeze contributed to the surge, with more than $4 billion worth of bearish cryptocurrency positions reportedly liquidated as prices moved higher.

ETF Inflows Strengthen Bitcoin Rally

The latest gains have been supported by renewed demand from institutional investors. According to a report by CNBC, US spot Bitcoin exchange-traded funds attracted $1.92 billion in net inflows last week, their strongest weekly performance since October, when Bitcoin reached its previous cycle peak.

The rally also followed the US Treasury’s decision to increase purchases of longer-duration government bonds. The move temporarily pushed bond yields lower and improved appetite for riskier assets.

Analysts Watch Rally Sustainability

Despite the sharp recovery, concerns remain over whether Bitcoin can maintain its upward momentum after a prolonged period of weakness. Notably, a similar rally in January 2023 initially lost momentum before Bitcoin found support around its 200-day moving average.

Options market activity is also showing greater confidence, with investors increasingly purchasing exposure to Bitcoin’s potential gains over longer periods rather than focusing solely on short-term moves.

Ether gained 1.17% to $2,498, while XRP rose 2.6% to $1.52. Another potential catalyst could come from Strategy, the largest corporate holder of Bitcoin, which has not purchased the cryptocurrency for two weeks. A return to buying while ETF inflows remain strong could provide additional support.