Bitcoin Reclaims $80,000 as Spot ETF Inflows Top $2.6 Billion

Bitcoin climbed back above the $80,000 threshold on Thursday, extending a recent rally fueled by sustained capital inflows into U.S. spot exchange-traded funds (ETFs) and a broader improvement in market risk appetite that also lifted technology stocks.

The world's largest cryptocurrency rose as much as 3% to $80,844.8 during the session before paring some of its gains, according to the source report. The move marked the second time this week that Bitcoin has crossed the key psychological level, a first since May.

ETF Inflows Signal Renewed Demand

A primary driver behind the renewed momentum is a significant uptick in institutional interest, reflected in ETF fund flows. Data compiled by media outlets shows that U.S.-listed spot Bitcoin ETFs have attracted more than $2.6 billion in cumulative net inflows over the past eight trading days.

Another signal of strengthening U.S. demand is the re-emergence of the so-called "Coinbase premium," where Bitcoin's price on the U.S.-based exchange has risen above its price on Binance for the first time in about three months. Lacie Zhang, a research analyst at Bitget Wallet, stated this could suggest "institutional fund allocation through ETFs is returning" and that overall U.S. demand is improving, though it has not yet reached a "very strong" level.

Market Shifts From Short Squeeze to Buying Interest

Ad

The latest surge suggests the rally has staying power beyond the initial catalyst earlier in the week, which was largely driven by a massive liquidation of leveraged short positions. As the impact of that technical short squeeze fades, the market's ability to sustain prices above $80,000 will increasingly depend on organic buying pressure.

While the recent gains represent a significant recovery, Bitcoin remains below its record high of approximately $126,000 reached last October, the source report noted. The current price action is seen as crucial in demonstrating that underlying buying demand is present to support further advances.

Broader Risk Appetite Lifts All Boats

Bitcoin's ascent has coincided with a sharp rally in U.S. technology stocks, particularly after Nvidia (NVDA) released a strong business outlook. This trend challenges a previous narrative that investors would need to sell out of high-flying AI stocks to fund a new rally in crypto assets. Instead, both asset classes appear to be benefiting from a synchronized improvement in investor sentiment.

Looking ahead, market participants are watching liquidity conditions closely. Tim Meggs, CEO of LO:TECH, noted that Bitcoin could continue to rise over the weekend, but a shorter trading week ahead could mean lower liquidity, which might amplify price volatility. "Liquidity will be the key factor determining Bitcoin's next phase," he said.