Bitcoin’s price surged further on Monday, flirting with $80,000 after U.S. exchange-traded funds had their best week since October.
The leading cryptocurrency was recently trading more than 2% higher over a 24-hour period after flying past $79,155. It earlier on Monday morning in New York reached as high as $79,954.
Over the past week, the coin has risen 25%. Its rise comes after a sluggish June and July when it mostly traded below $65,000.
Last week, U.S. investors reversed course and bought up shares in the Bitcoin ETFs, which had their best week since October, when bitcoin notched its record of $126,080. Data from Farside Investors shows that the funds — managed by the likes of BlackRock, Fidelity, Grayscale, and Morgan Stanley — received $1.9 billion in new cash.
“This is one of the benefits of a commodity in a constant state of supply shock,” Bloomberg Intelligence ETF analyst Eric Balchunas wrote on X on Monday.
The surge in interest in bitcoin’s was triggered by the Treasury Department’s announcement last week to at least double the size of its long-dated bond buybacks.
Since the Treasury made the announcement, yields have gone down, while bitcoin and gold have shot up. The dollar last week was trading at a three-month low and on track for its worst week of August. Bitcoin, on the other hand, had its best week since 2023.
Positive regulatory news coming out of the White House also helped: President Donald Trump held a meeting with crypto executives earlier last week, and urged lawmakers to get the Clarity Act over the line.
Lawmakers will vote on the long-awaited crypto legislation, which the digital asset industry has long called for, in September. The proposed law will establish a framework for distinguishing between digital assets that are securities, commodities or payment stablecoins.
Bitcoin notched an all-time high in October but was hurt later that month after the biggest liquidation event in crypto history saw over $19 billion in bets closed. The coin continued its plunge after the Federal Reserve made it clear it was in no hurry to lower interest rates and investors increasingly threw money at artificial intelligence-related stocks.
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