Bitcoin Surges as Risk Appetite and ETF Inflows Improve

Bitcoin surged 6% to around $77,370 on Friday, extending gains to over 20% this week, its strongest weekly gain in more than three years, boosted by a broader improvement in risk appetite. The US Treasury announced plans to at least double its purchases of longer-dated government bonds, pushing long-term yields lower and the dollar weaker. The move also triggered a major short squeeze, with billions of dollars in bearish crypto positions liquidated over recent days. Investor sentiment was further supported by President Donald Trump’s meeting with cryptocurrency industry leaders and his call for progress on a new crypto market-structure bill. US spot Bitcoin ETFs have also attracted more than $1 billion in weekly inflows, adding to demand. Despite the sharp rebound, Bitcoin remains well below its record high above $126,000 reached last October.

Bitcoin continued its bullish run toward $75,000 in August, hitting its highest level since late May and poised for a weekly gain of about 19%, its strongest since February 2024, after President Donald Trump urged Congress to pass a key regulatory bill. Trump called on lawmakers to advance a “fair version” of the Clarity Act, legislation backed by the crypto industry that aims to establish a comprehensive regulatory framework for digital assets in the US. The rally triggered more than $1 billion in Bitcoin short-position liquidations within about an hour, while total crypto short liquidations reached a record $2.7 billion. Meanwhile, US spot Bitcoin ETFs recorded $517 million in net inflows, their highest since May. Elsewhere, the US Treasury’s decision to substantially expand its purchases of 20-year and 30-year bonds pushed yields sharply lower, further boosting the appeal of riskier assets such as Bitcoin.

Bitcoin climbed about 11% since early this week toward $70,000 in mid-August, reaching its highest level since early June, as optimism over a more crypto-friendly US policy stance sparked a rebound that was amplified by a wave of short liquidations. President Donald Trump met with crypto executives at the White House and urged Congress to pass legislation expected to support the digital-asset sector, boosting sentiment across the crypto market. More than $1 billion in Bitcoin short positions were liquidated in about an hour, while total crypto short liquidations reached a record $2.7 billion, further accelerating the rally. Falling Treasury yields provided another tailwind after the US Treasury said it would at least double buyback operations for long-dated government bonds, improving the backdrop for risk assets. US spot Bitcoin ETFs recorded $517 million in net inflows, their highest since May.