Bitcoin rallies 24% to near $80,000 as yields rise and US policy looms

Bitcoin surged from below $64,000 on Aug. 19 to around $79,800 on Aug. 24, marking a 24% weekly gain – the strongest advance since March 2023.

Drivers of the breakout

• US Treasury announced a doubling of its liquidity‑support buybacks for 10‑30‑year securities, increasing the maximum size from $2 billion to at least $4 billion per operation.
• US spot Bitcoin ETFs recorded roughly $1.9 billion of net inflows over the week ending Aug. 21, marking five consecutive days of inflows.
• Short sellers were forced to cover as Bitcoin broke key resistance levels, creating a large single‑day short‑liquidation event.

Analyst outlook

BTSE COO Jeff Mei sees a potential range of $80,000–$90,000 if Treasury buybacks expand and the CLARITY Act makes material progress, but warns that a return to $70,000 is possible if yields stay high or policy support wanes.

Arctic Digital head of research Justin d’Anethan emphasizes that expectations around US rates were the primary catalyst, with ETF flows and regulatory news providing secondary support.

Risks and near‑term targets

• Rising US bond yields could make government debt more attractive relative to Bitcoin.
• Failure of the Treasury program to exceed the initial $4 billion cap may limit its market impact.
• Uncertainty around the CLARITY Act’s Senate progress adds regulatory risk.

Technical patterns on daily and weekly charts show bullish engulfing formations, but a sustained break above $80,000 is needed to confirm the upside. A pullback to $70,000 would re‑establish a key support level.