Bitcoin Tops $80,000 Amid ETF Inflows, Fed Fears, and Senate Pressure

Bitcoin surged to a three-month high this week, briefly climbing above $80,000 for the first time since mid-May as a wave of bullish signals converged to force the liquidation of billions in leveraged short bets. The token touched an intraday peak of $81,257 before retreating to roughly $78,800 in New York trading, leaving it still well off its all-time high of approximately $126,000 reached last October.

The macro backdrop drove much of the move. A weaker US dollar combined with the Treasury's decision to expand long-dated bond buybacks revived the debasement narrative, pushing investors toward scarce hard assets. US spot Bitcoin ETFs pulled in approximately $1.9 billion in the week ending August 21, the largest weekly inflow since October 2025, as institutional buyers stepped back in after months on the sidelines. Total crypto liquidations over the prior 24 hours reached roughly $566 million, with approximately $331 million of that coming from short positions, confirming that a short squeeze amplified the breakout.

Weekly Gain of 22% Sparks Bear Market Debate

The rally capped a remarkable seven-day run. Bitcoin closed the prior Friday with a 22% weekly gain, rising from about $62,800 to $76,943 as positive catalysts stacked up. CNBC reported that Lucy Gazmararian, founder and managing partner at Token Bay Capital, told Squawk Box Europe that crypto is nearing the end of its bear market, though she cautioned that one final flush of roughly 20% could still come before a true bottom is confirmed.

Looking ahead, two events will test whether the gains hold. Federal Reserve Chair Kevin Warsh is scheduled to speak at the Jackson Hole Economic Policy Symposium on Friday, August 28, and analysts say his tone on rate policy will be a key signal for risk assets. Separately, The Motley Fool noted that pressure is mounting for the Senate to pass key crypto legislation in September, a bill that analysts say could provide a more durable regulatory foundation for institutional participation and longer-term price stability.