Bitcoin tops $80K as ETF demand and Treasury buybacks fuel rally

Bitcoin rose above $80,000 on Tuesday for the first time since mid-May as ETF demand and US Treasury buybacks fueled a rally. Bitcoin traded as high as $81,160.06. Bitcoin's seven-day gain reached about 25.8%, according to CoinGecko data. The move extended Bitcoin's strongest weekly rally in more than two years. US spot Bitcoin ETFs recorded $1.92 billion in net inflows last week. Sygnum Bank Chief Investment Officer Fabian Dori said the rally was led by spot demand and ETF allocator flows rather than leverage. Dori said rallies based on those flows tend to be more durable than rallies driven by crowded futures positions. On Wednesday, the US Treasury said it would at least double the maximum size of its long-end liquidity-support buybacks to $4 billion per operation. President Donald Trump urged Congress to pass crypto market structure legislation at a White House event. Bernstein analysts led by Gautam Chhugani called the Treasury decision a strong trigger for Bitcoin's rise. The analysts said Bitcoin has historically responded positively to liquidity expansion.