Bitcoin Tops $78K as CLARITY Act Hopes and ETF Inflows Power Rally

Bitcoin posted its best weekly performance since March 2024, surging 22% to close around $78,000 after a confluence of regulatory optimism, macroeconomic policy shifts, and institutional buying swept through digital asset markets. Investor sentiment improved sharply after the White House and crypto industry leaders pressed Congress to pass the CLARITY Act, a bill widely viewed as a potential catalyst to end the crypto winter that began last fall. Bitcoin ended Friday at $76,943.90, up from roughly $62,800 at the start of the week.

The rally extended across major altcoins. Ethereum climbed above $2,200 and XRP jumped 25%, breaking out of a months-long slump alongside Bitcoin. Despite the gains, Bitcoin still sits well below its 2026 high of $94,820 set in mid-January and its all-time high of $126,198 reached last October. Lucy Gazmararian of Token Bay Capital told CNBC that crypto may be approaching the end of its bear market, though she cautioned that one final flush lower remains possible before a full recovery takes hold.

ETF Inflows Hit Highest Level Since May

Spot Bitcoin ETFs recorded $606 million in net inflows on Thursday alone, the strongest single-day figure since May 1, with BlackRock capturing roughly 83% of that flow. U.S. spot Bitcoin ETFs have now logged buying for multiple consecutive sessions, adding sustained institutional buying pressure that analysts say is a primary engine of the current price recovery. A massive short squeeze amplified the move, wiping out more than $1.2 billion in Bitcoin short positions as traders were forced to cover losses.

The macro backdrop also played a key role. Treasury Secretary Scott Bessent's announcement of plans to expand long-term bond buybacks weakened the US Dollar Index, which has fallen 3% since the end of July to 98.6, making risk assets like Bitcoin more attractive. CoinShares head of research James Butterfill noted that the rally is primarily a macro story, with Bitcoin remaining acutely sensitive to shifts in liquidity expectations and real yields. Bitcoin now faces its next key test at the $80,000 level, with weekend trading expected to bring thinner liquidity and heightened sensitivity to any geopolitical developments.