- Bitcoin surged past $81,000 on Monday, August 24, reaching its highest price in over three months.
- Analysts attribute the rally to a U.S. Treasury buyback expansion, a massive short squeeze, and surging institutional demand.
- Nearly $2.4 billion flowed into spot Bitcoin ETFs in August, marking a sharp reversal from June’s low inflows.
Bitcoin prices rallied on Monday, August 24, climbing to $81,265.30 around 10:45 p.m. EST, according to Coinbase data from TradingView. The cryptocurrency was up more than 25% since falling to roughly $64,100 on August 19.
Dave Liebowitz, head of growth at Cap, stated via email that the move looks less like a crypto-specific rally and more like several forces converging. He noted that nearly $2 billion flowed into U.S. spot Bitcoin ETFs last week, while Treasury Secretary Scott Bessent doubled long-dated Treasury buybacks from $2 billion to $4 billion per operation.
Brett Sifling, wealth manager for Gerber Kawasaki Wealth & Investment Management, asserted that the Treasury’s surprise buyback expansion sparked currency fears and started the short squeeze. “This combination of events, along with the bottom timing of the well-known 4-year cycle, is likely the reason that Bitcoin has some continued momentum behind it,” Sifling concluded.
Thomas Perfumo, global economist for Kraken, noted that ETF flows tell the story, with August being the strongest month for spot Bitcoin ETF inflows all year at about +$2.4 billion. “That’s a meaningful reversal in investor demand, and it accelerated right into the price move,” she specified.
Paul Howard, senior director at Wincent, claimed the initial move was driven by a short squeeze supported by U.S. Treasury purchases and renewed optimism around the CLARITY Act. “This comes ahead of what some analysts, myself included, expect could be a continued ascent for Bitcoin, potentially taking BTC towards $100,000 by year-end,” he added.
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