Bitcoin surged to a 15-week high above $81,000 on Tuesday before pulling back on profit-taking, extending a rally that has erased three months of losses. Spot Bitcoin ETFs added $338 million in net inflows on August 24, led by BlackRock's IBIT, while BitMEX co-founder Arthur Hayes argued the move marks the start of a bull market driven by rising dollar liquidity.
Bitcoin climbed to $81,265 on Tuesday, its highest price since May 2026. It then slipped to $78,254 as traders took profits after the rapid advance.
The pullback still left the cryptocurrency up approximately 28% over eight days from the $62,000 area. That weekly gain ranks as Bitcoin's second-largest in five years.
ETF Inflows Keep the Institutional Bid Intact
US spot Bitcoin ETFs posted $338 million in net inflows on August 24. BlackRock's IBIT alone contributed $209 million of that total.
Spot Ether ETFs added $116 million on the same day. BlackRock's ETHA accounted for $90.92 million of that figure.
Rising activity across spot markets, derivatives and ETFs pushed Bitcoin near $80,000 alongside a notable increase in leverage, even as broader macro-driven inflows stayed comparatively small. That mix, by the report's own reading, signals the rally is still tactical, with investors reacting to momentum and short-term trends.
Technical Levels Point Toward $85,000 If Support Holds
Bitcoin's next resistance sits near $80,000 after its rejection above $81,000. A confirmed recovery above that level could open the way to $82,000 before a test of the $85,000 mark.
Renewed rejection, however, risks a slide back to $75,000, the key near-term support. A drop below that floor could expose $72,000.
The asset's Relative Strength Index (RSI) read 78.71 over the last day, an overbought signal that points to possible consolidation. Even so, the bullish MACD still favors the upward trend.
Hayes Ties the Move to Treasury Liquidity
Arthur Hayes offers a different lens on the rally. In an August 25 essay, the BitMEX co-founder argued Bitcoin has entered a new bull market as US Treasury Secretary Scott Bessent works to inject more dollar liquidity through Treasury market operations.
He compared Bessent's approach to that of his predecessor, Janet Yellen, who boosted Treasury bill issuance in December 2023. That shift, Hayes says, pulled a $2.4 trillion liquidity injection out of the Fed's reverse repo facility and into markets, where Bitcoin and the Nasdaq 100 both rallied.
On August 19, Bessent announced Treasury buybacks would increase to at least $4 billion per operation. Ten-year yields initially fell and Bitcoin rallied in the following days, though the yield climbed back above its pre-announcement level by the next trading session.
Sources: CoinGape, CryptoPotato
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