Bitcoin Tops $77,000 as Treasury Policy and Record ETF Inflows Fuel Best Rally Since 2023
Bitcoin is on pace for its strongest weekly gain in over two years, powered by the U.S. Treasury's bond buyback plan and a second straight day of heavy ETF inflows — with traders now eyeing $80,000 as the next test.
Bitcoin Tops $77,000 as Treasury Policy and Record ETF Inflows Fuel Best Rally Since 2023
Bitcoin's most explosive rally in more than two years is being driven by two forces converging at once: a policy shift out of Washington and a fresh wave of institutional buying through U.S.-listed ETFs. The two threads have pushed the largest cryptocurrency from the low $60,000s earlier this week to briefly above $79,000, putting it on track for its best weekly performance since March 2024.
A Treasury Move Reignites Risk Appetite
The rally's spark came from the U.S. Treasury, not from crypto markets themselves. Treasury Secretary Scott Bessent's announcement that the department would double the size of its long-term bond buybacks eased pressure on yields and sent investors chasing risk assets, Bitcoin included. Analysts framed the move as a signal about liquidity conditions rather than a crypto-specific catalyst — VanEck's head of digital-asset research described the reaction as markets "reigniting fears of fiscal dominance."
Political momentum reinforced the move. President Trump met with executives from Coinbase, Payward, and other major industry players this week and pressed the Senate to advance the Clarity Act, the long-stalled bill meant to establish clearer market-structure rules for digital assets. Bitget Research's chief analyst noted that progress on the bill "could boost investor confidence and spark a broader recovery in digital assets" — a view echoed across trading desks as Bitcoin climbed nearly 20% on the week.
Wall Street Piles Back Into ETFs
The macro tailwind has been matched by hard inflow numbers. U.S. spot Bitcoin ETFs pulled in $606 million on Thursday alone — their strongest single day since May — extending into a second consecutive day of heavy institutional buying on Friday. Crypto-linked equities rallied in step: Coinbase, Robinhood, Circle, Gemini, and Strategy all posted solid gains as Bitcoin held above $77,000 during Friday's U.S. session.
Not every analyst is calling this a clean breakout, however. CoinShares' James Butterfill cautioned that accumulation by large, long-term holders remains "modest in scale," meaning the market may still lack the depth of conviction needed to sustain new highs once the current momentum fades.
What's Next: The $80,000 Test
With Bitcoin trading as high as $79,400 before easing back, $80,000 has emerged as the level traders are watching most closely — particularly since it needs to hold before Friday's U.S. market close, after which Bitcoin loses the daily ETF bid and moves into thinner weekend trading. Upcoming U.S. flash PMI data could also move yields and the dollar, two variables that have driven much of this week's price action. For now, the combination of a friendlier fiscal backdrop and returning institutional demand has crypto markets in their strongest position in months — though both catalysts will need to hold for the rally to become more than a short-term squeeze.
