Bitcoin is threatening to break through US$80,000 after recording its largest weekly dollar gain on record, as renewed institutional buying and a shift in US Treasury policy injected fresh momentum into crypto markets.
Bitcoin was trading around US$78,700 early Tuesday, having briefly touched US$80,000 during the latest session.
The cryptocurrency gained about 22.7% in the week to August 23, adding US$14,264 to close at US$77,387 - its largest absolute weekly increase ever and its strongest percentage performance since 2023.
ETF money returns
Institutional demand has played a major role in the rally.
US spot Bitcoin exchange-traded funds attracted about US$1.92 billion of net inflows in the week ended August 21, their strongest weekly intake since October 2025. Spot Ethereum ETFs added another US$697.2 million, taking combined Bitcoin and Ether ETF inflows to about US$2.6 billion.
The return of ETF buying marks a sharp change after months of softer institutional demand and has provided evidence that the rally is being supported by spot-market buying rather than solely by traders covering short positions.
Treasury move sparks crypto rally
The catalyst came after the US Treasury said on August 19 that it would at least double the maximum size of its liquidity-support buybacks for longer-dated Treasury securities, lifting individual operations from US$2 billion to at least US$4 billion from September 9.
The announcement initially pushed longer-term yields lower and weakened the US dollar, providing support for Bitcoin and other assets viewed as alternatives to traditional fiat currencies.
Bitcoin subsequently surged from below US$65,000 on August 18 to almost US$80,000 within days.
Ethereum and Solana join rally
Ethereum has been an even stronger performer over the past week, climbing around 30% to approximately US$2,475, after trading below US$1,900 earlier this month.
Solana was around US$97.60, up roughly 2% over the latest 24-hour period and well above the US$77 level seen on August 18. XRP, however, was weaker at around US$1.48, down roughly 2.5%.
US$80,000 becomes key test
Attention now turns to whether Bitcoin can establish itself above the psychologically important US$80,000 level.
Despite the sharp rebound, Bitcoin remains well below its October 2025 record of around US$126,000. The speed of the latest advance also raises the prospect of increased profit-taking and volatility.
For the rally to extend, the key numbers to watch will be ETF inflows, spot trading volumes and leverage in derivatives markets — particularly whether institutional demand continues after Bitcoin's strongest week in nearly 3 years.