The Investor
24 Aug 2026, 10:51
Bitcoin Climbs 1.3% as Treasury Buybacks and ETF Inflows Support Crypto Rally
Bitcoin traded around $77,750 on Monday, up roughly 1.3% over the past 24 hours, extending its recent recovery after one of the cryptocurrency's strongest weeks in years.
The move follows a sharp rally that pushed Bitcoin from below $65,000 earlier this month to above $77,000, with the cryptocurrency gaining more than 20% over the past week.
U.S. Treasury bond buying remains a major catalyst
A key driver continues to be the U.S. Treasury's surprise decision to double planned buybacks of longer-dated Treasury securities. The program is intended to improve liquidity in the government bond market, but investors have also interpreted the increased purchases as supportive for financial-market liquidity.
The announcement initially pushed long-term yields lower and weakened the dollar, improving conditions for risk assets such as Bitcoin. Treasury Secretary Scott Bessent's strategy involves increasing purchases of longer-term government debt while relying more heavily on short-term Treasury bill issuance.
Institutional demand adds support
Crypto-specific flows are also strengthening the move. U.S. spot Bitcoin ETFs attracted approximately $1.9 billion in net inflows last week, with inflows recorded during five consecutive trading sessions. The Coinbase Bitcoin Premium Index also turned positive, indicating improving U.S. spot-market demand. Bitcoin is now consolidating near $78,000 after briefly approaching $80,000 last week. The ability to hold the $77,000 area could be important for maintaining the current momentum, while the $79,000-$80,000 region remains a significant near-term resistance zone. (KuCoin)
The combination of Treasury liquidity measures, strong ETF inflows, a softer-dollar narrative and improving regulatory sentiment has therefore created a substantially more supportive backdrop for Bitcoin after months of weakness.
Bitcoin traded around $77,750 on Monday, up roughly 1.3% over the past 24 hours, extending its recent recovery after one of the cryptocurrency's strongest weeks in years.
The move follows a sharp rally that pushed Bitcoin from below $65,000 earlier this month to above $77,000, with the cryptocurrency gaining more than 20% over the past week.
U.S. Treasury bond buying remains a major catalyst
A key driver continues to be the U.S. Treasury's surprise decision to double planned buybacks of longer-dated Treasury securities. The program is intended to improve liquidity in the government bond market, but investors have also interpreted the increased purchases as supportive for financial-market liquidity.
The announcement initially pushed long-term yields lower and weakened the dollar, improving conditions for risk assets such as Bitcoin. Treasury Secretary Scott Bessent's strategy involves increasing purchases of longer-term government debt while relying more heavily on short-term Treasury bill issuance.
Institutional demand adds support
Crypto-specific flows are also strengthening the move. U.S. spot Bitcoin ETFs attracted approximately $1.9 billion in net inflows last week, with inflows recorded during five consecutive trading sessions. The Coinbase Bitcoin Premium Index also turned positive, indicating improving U.S. spot-market demand. Bitcoin is now consolidating near $78,000 after briefly approaching $80,000 last week. The ability to hold the $77,000 area could be important for maintaining the current momentum, while the $79,000-$80,000 region remains a significant near-term resistance zone. (KuCoin)
The combination of Treasury liquidity measures, strong ETF inflows, a softer-dollar narrative and improving regulatory sentiment has therefore created a substantially more supportive backdrop for Bitcoin after months of weakness.
