Bitcoin (BTC) Climbs 25% Toward $80K as ETFs Record Largest Weekly Inflows Since October

Key Highlights

• Bitcoin climbed approximately 25% this week, reaching nearly $80,000 following expanded U.S. Treasury buyback operations on long-term bonds
• Approximately $4 billion worth of short positions in cryptocurrency markets faced forced liquidation amid the price surge
• U.S. spot Bitcoin ETFs recorded $1.6 billion in net inflows over the past week
• Strategy’s 840,447 BTC position has returned to profitability with more than $2 billion in unrealized gains
• Market analysts attribute the rally partially to a historic short squeeze alongside improving macroeconomic factors

Bitcoin experienced a significant rally this week, climbing approximately 25% to surpass $78,000 and briefly touching $79,500, following a strategic policy adjustment by the U.S. Treasury that helped ease long-term government bond yields from nearly two-decade peaks.

Bitcoin (BTC) Price

The Treasury Department revealed plans to expand its buyback program for longer-maturity government securities, increasing the purchase amount to $4 billion per operation—double the previous $2 billion level. This policy change contributed to a decline in the 30-year Treasury yield from 5.34% to approximately 5.19%.

The announcement catalyzed significant forced buying activity as bearish market participants faced liquidation. Approximately $4 billion in short cryptocurrency positions were forcibly closed during Thursday and Friday trading sessions.

Market observers provided perspective on the price movement. Shawn Young, chief analyst at MEXC Research, remarked that “The Treasury opened a pressure valve, and crypto priced it like a regime change.” He cautioned that Bitcoin’s advance toward $70,000 may be premature considering Treasury yields remain near 5%.

Jeff Ko, chief analyst at CoinEx, characterized the buyback announcement as “a signal, a soft policy put on the long end,” emphasizing that it doesn’t represent a fundamental transformation in financial conditions and shouldn’t be confused with quantitative easing.

Spot ETF Demand Surges

U.S. spot Bitcoin exchange-traded funds registered $1.6 billion in net inflows throughout the week. BlackRock’s IBIT fund alone attracted $503 million on Thursday. Total ETF assets under management increased above $85 billion, up from approximately $70 billion in June.

Market analyst Ted Pillows highlighted on X that ETFs accumulated $1.92 billion worth of BTC this week—representing the strongest weekly inflow since October 2025. He emphasized that Bitcoin successfully breached multiple significant resistance levels, with the $78,000–$80,000 zone emerging as the crucial range to monitor. Sustained trading above this level, according to Pillows, would signal the conclusion of the bear market.

Financial research firm Bernstein connected the price recovery to enhanced market liquidity, renewed ETF demand, and a more favorable regulatory environment. Their analysts anticipate expedited SEC and CFTC regulatory development in areas including tokenized securities and prediction markets.

Strategy’s Bitcoin Position Returns to Profit

Strategy maintains a position of 840,447 BTC bought at an average cost basis of $75,385. With Bitcoin trading near $78,000, the company’s holdings show an unrealized gain exceeding $2 billion.

The company recently divested approximately 0.8% of its Bitcoin holdings to fund dividends and repurchase programs for its STRC preferred shares. Bernstein analysts project that Strategy will resume acquisition activity as STRC approaches its $100 nominal valuation.

Ko identified Bitcoin’s 200-day moving average, positioned near $69,000, as a critical technical benchmark. Bitcoin has successfully cleared this threshold and must maintain support above it while competing against government bonds offering nearly 5% yields to investors.

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