Bitcoin prices surpassed $81,000 on August 24.
Getty
Bitcoin prices rallied on Monday, August 24, climbing to their highest value in over three months as multiple variables fueled gains.
The first digital currency to scale rose to $81,265.30 around 10:45 p.m. EST, according to Coinbase data from TradingView. At this point, the cryptocurrency was up more than 25% since falling to roughly $64,100 on August 19.
It was also trading at its loftiest value since roughly May 15, additional Coinbase figures from TradingView reveal.
When asked what caused this latest upside in the digital asset, analysts cited several factors, including the recent U.S. Treasury announcement and an ongoing short squeeze.
“Bitcoin’s move toward $80,000 looks less like a crypto-specific rally and more like several forces converging at once,” Dave Liebowitz, head of growth at private credit platform Cap, stated via email.
“The macro backdrop has become more supportive for risk assets, while nearly $2 billion flowed into U.S. spot Bitcoin ETFs last week,” he added. “That combination of improving liquidity conditions and sustained institutional demand can move Bitcoin very quickly, particularly after a period where positioning had become more defensive.”
“In addition, when Treasury Secretary Scott Bessent doubled long-dated Treasury buybacks from $2 billion to $4 billion per operation and raised the possibility of deploying nearly $950 billion held in the Treasury General Account, markets didn’t interpret the move simply as a signal of lower yields,” noted Liebowitz. “They heard debasement.”
Bitcoin subsequently enjoyed its best week since March 2023, and the sharp, upward movement resulted in $3 billion’ worth of short bets being liquidated in one day, he emphasized.
Brett Sifling, wealth manager for Gerber Kawasaki Wealth & Investment Management, also pointed to multiple variables when explaining the digital asset’s latest gains.
“There are a few factors driving the recent sharp rally in Bitcoin, which I believe was kicked off last by the Treasury’s surprise buyback expansion,” he asserted via emailed comments.
“This move by the Treasury to buy back bonds also happened as the media was alerting the public that the U.S. debt topped $40T,” said Sifling. “The combination of this news sparked currency fears and started the short squeeze that we are seeing with Bitcoin.”
“We also have an upcoming catalyst that is getting market participants excited about the crypto industry as a whole,” he added. “Last week Trump met with crypto leaders and urged the Senate to pass the long awaited Clarity Act.”
“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.
Several market analysts emphasized the importance of strong inflows into bitcoin-based exchange-traded funds (ETFs), with Thomas Perfumo, global economist for Kraken, stating that “ETF flows tell the story. August is the strongest month for spot Bitcoin ETF inflows all year — about +$2.4 billion — and it’s nearly wiped out half of the year-to-date deficit.”
“In June, ETFs saw inflows on just three of twenty-one trading days,” she noted via emailed commentary, specifying that “In August it’s eleven of fifteen.”
“That’s a meaningful reversal in investor demand, and it accelerated right into the price move,” said Perfumo.
Paul Howard, senior director at crypto trading firm Wincent, also weighed in on the impact of such inflows.
“The initial move was driven by a short squeeze, supported by U.S. Treasury purchases and renewed optimism around the CLARITY Act,” he claimed via email. “Since then, prices have continued to rally, with more than $2 billion flowing into ETFs over the past five days,” Howard said on August 24.
“This momentum has caught the attention of investors who had previously been looking elsewhere, and we are now seeing retail participants and smaller wallets begin to take positions,” added Howard.
He spoke to the cryptocurrency’s future, stating that “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.”
Psalion managing partner Tim Enneking also provided an outlook, choosing to focus on technical analysis.
“The sequential short-squeeze pumps on August 19-21 have shown remarkable stability,” he said via emailed commentary. “I think the cut-the-cord-on-the-coiled-spring analysis still holds. $80k is struggling to switch resistance to support, so the spring may coil again.”
“The next key level, $82.8k, last hit on May 5, is absolutely huge!” he continued. “Should BTC take that out, the bull is loose; if not, all bets are off.”