BITCOIN PRICE APPROACHES $80,000 ON ETF INFLOWS

Bitcoin climbed to $79,739 on Tuesday, a gain of 3.1% on the day, as investors moved funds into spot bitcoin exchange-traded funds and appetite for riskier assets improved. The move extends a rally that began last week, when bitcoin rose more than 20% over three days—its largest three-day gain since 2023. According to one analysis, the rally was partly driven by a short squeeze that liquidated more than $4 billion in bearish cryptocurrency positions as prices rose.

The gains followed the U.S. Treasury's announcement that it would double its purchases of longer-dated government bonds, which temporarily lowered yields and increased demand for assets viewed as higher-risk. Institutional interest has returned to bitcoin; spot bitcoin ETFs attracted $1.92 billion in net inflows last week, the largest weekly total since October when bitcoin previously reached its current cycle peak. Ether, the second-largest cryptocurrency, rose 2% to $2,494 during the same period.

One research firm noted that activity in the options market and strong inflows into both bitcoin and ether ETFs suggest investors believe the rally may prove more durable than a short-term bounce. However, questions persist about whether the gains will hold: bitcoin has remained in a prolonged decline since October, and a similar surge in January 2023 initially faded before finding support at its 200-day moving average. The cryptocurrency is approaching the $80,000 level it last touched in May.