Bitcoin surged 25% as lower Treasury yields and massive short liquidations fueled the rally. Spot Bitcoin ETFs recorded their strongest weekly inflows since October 2025, reaching $1.92 billi
Bitcoin — BTC, has delivered a powerful rebound, pushing traders back toward bullish expectations. BTC climbed roughly 25% this week and reached $79,500. Lower long-term Treasury yields helped improve conditions for risk assets. Massive short liquidations then added fuel to the move. Spot Bitcoin ETFs also recorded their strongest weekly inflows since October 2025. Now, Bitcoin faces a crucial test near $80,000. A decisive breakout could strengthen the bullish case.
https://twitter.com/KobeissiLetter/status/2090459917874331915Bitcoin's rally accelerated after the U.S. Treasury increased bond buyback operations. The Treasury doubled purchases for longer-dated government bonds to $4 billion. Previous operations involved $2 billion in purchases. The decision helped push the 30-year Treasury yield lower. The yield dropped from 5.34% to roughly 5.19%. Lower yields can improve investor appetite for riskier assets.
Bitcoin also benefited from a major short squeeze. Around $4 billion in bearish crypto positions faced liquidation Thursday and Friday. Forced buying added momentum as traders closed losing short positions. Analysts remain cautious about declaring a major market regime change. Shawn Young described the Treasury move as a pressure release.
However, Young argued that Bitcoin's rally still faces challenges. Jeff Ko also called the buyback a supportive policy signal. However, Ko stressed that the move does not represent quantitative easing. Bitcoin now trades above several major resistance levels. The $78,000 to $80,000 region has become the key area. Holding above that zone could strengthen the bullish market structure.
Spot Bitcoin ETFs provided another major source of support. U.S. funds attracted roughly $1.6 billion in net inflows this week. BlackRock's IBIT alone received $503 million on Thursday. Combined ETF assets have now climbed above $85 billion. That figure compares with roughly $70 billion recorded during June. Analyst Ted Pillows reported even stronger weekly ETF buying.
According to Pillows, ETFs purchased $1.92 billion worth of Bitcoin. That marked the strongest weekly inflow since October 2025. ETF demand gives Bitcoin another important source of buying pressure. Strong institutional flows can help support prices during market pullbacks. Bernstein also linked the recovery to improving liquidity and stronger ETF demand. Analysts pointed toward a more supportive regulatory environment as another factor.
Strategy has also moved back into profit following Bitcoin's latest advance. The company holds 840,447 BTC at an average price near $75,385. Bitcoin around $78,000 puts the position above $2 billion in unrealized gains. Strategy recently sold about 0.8% of holdings for corporate funding needs. Bernstein expects the company could resume Bitcoin purchases later.
