Bitcoin Crosses $80,000 as Treasury Policy Spurs Crypto Rally
What happened: Bitcoin surged past $80,000 for the first time since May, up 38% from its June lows below $58,000.
What happened: Bitcoin surged past $80,000 for the first time since May, up 38% from its June lows below $58,000. The rally follows the U.S. Treasury’s Aug 19 announcement to double long-end bond buybacks to at least $4 billion per operation, a move intended to support market liquidity. Spot BTC ETFs drew $1.9 billion in inflows last week, the highest since October 2025, with BlackRock’s IBIT leading the pack.
Why it matters: The Treasury’s intervention has reignited risk appetite and ETF demand, helping crypto markets recover from a summer slump. However, some analysts—including Stanley Druckenmiller—warn the rally is built on unstable policy foundations, with the CLARITY Act still stalled in the Senate and prediction markets assigning less than a 20% chance of passage this year. The sustainability of the rally remains in question as macro risks persist.