Bitcoin Reclaims $80,000 as ETF Inflows Surge and Treasury Plans Larger Buybacks

Bitcoin pushed back above $80,000 in late August, its first move through the level since mid-May, underscoring how quickly crypto sentiment can flip. The advance came in a rush rather than a steady climb: Bitcoin gained about 20%–25% over the week and reached an intraday high of $81,272. Macro and flow dynamics aligned. The U.S. Treasury said it plans to roughly double the scale of its government bond buyback operations, lifting purchases to around $4 billion per session starting in early September. Larger buybacks can pressure yields and the dollar, a backdrop that has historically supported assets viewed as carrying less counterparty risk. At the same time, U.S. spot Bitcoin ETFs took in $1.92 billion of net inflows for the week ending August 21"22, led in large part by BlackRock's iShares Bitcoin Trust (IBIT). Daily net inflows hit $606 million on August 20. Positioning also played a role. As Bitcoin accelerated, bearish and heavily hedged positions were forced to unwind, especially among traders positioned after the June lows near $58,000. The liquidation cascade intensified the rally, wiping out billions in short bets as prices climbed. From the late-June trough around $58,000, Bitcoin is now up roughly 38% over about two months. Market watchers are stopping short of calling a new bull market on the back of one week. A more cautious interpretation is a catch-up move: Bitcoin had lagged other risk assets over the summer, and a macro catalyst combined with forced selling set the stage for a swift repricing. With the Treasury's expanded buyback program set to ramp up in September, that macro tailwind may still have room to run.