Bitcoin Tops $80,000 as ETF Inflows Extend Rally
Bitcoin briefly rose above $80,000 overnight and stayed near that level Tuesday. This followed a rise last week.
Some reports said it hit about $81,160 Tuesday. That was its first move above $80,000 since mid-May.
New money flowed into bitcoin ETFs and investors showed more risk appetite. These factors extended the recent cryptocurrency rally.
Weekly ETF inflows reached about $1.92 billion. A short squeeze also forced sellers to close bearish bets.
This wiped out more than $4 billion in losing trades. A weaker dollar also helped push prices higher.
MarketWatch linked last week's rise to a Treasury Department plan. The plan would double buybacks of longer-dated Treasury bonds.
Buybacks would rise from $2 billion to $4 billion per operation. This change starts September 9.
Over six months bitcoin outperformed stocks and gold. Analysts said future gains depend on continued ETF demand.
Key Terms 4
- ETF A fund that trades like a stock and holds assets such as bitcoin.
- Treasury Department The US agency that manages government money and debt.
- short squeeze When investors betting on price drops must buy back at a loss.
- buybacks When the government repurchases bonds it previously sold.