Bitcoin reclaims $80,000 as ETF inflows, dollar weakness fuel broad crypto rally

Bitcoin rose above $80,000 on Monday, August 24, extending a week of sharp gains as a combination of institutional inflows, a weaker U.S. dollar, and forced short covering revived momentum across the cryptocurrency market.

The world’s largest cryptocurrency was trading at $80,732.71 as of around 11:30 a.m., up 4.6% over the previous 24 hours. The move marked the first time Bitcoin has traded above the $80,000 level since May. Over the past week, Bitcoin has gained roughly 25.77%, according to data cited by India Today.

The rally was not limited to Bitcoin. Ethereum, the second-largest cryptocurrency by market cap, was trading at approximately $2,507.92, up 2.39% on the day and 32.44% over the past seven days. XRP jumped 52.87% over the same period, while Solana rose 34.70% and Cardano gained 31.37%. Even meme coins participated: Dogecoin climbed 32.99% and Shiba Inu advanced 29.68% for the week.

The broad-based nature of the gains suggests risk appetite is spreading across the wider crypto market, not just returning to Bitcoin.

**Drivers: ETF flows, dollar weakness, short squeeze**

Analysts pointed to several catalysts converging to push prices higher. U.S. spot Bitcoin exchange-traded funds recorded net inflows of $517 million on August 19, the strongest daily total since early May, according to Ryan Lee, Chief Analyst at Bitget Research, as reported by India Today. Lee said the combination of fresh spot demand and forced short covering helped push Bitcoin toward the $78,500-$80,000 resistance zone.

A softer U.S. dollar also played a role. Rajagopal Menon, Vice President at WazirX, said the wider economic environment is becoming an important part of the crypto story. A weaker dollar and concerns around the U.S. fiscal position could strengthen the case for Bitcoin among investors seeking scarce, globally accessible assets, Menon said. He also noted that if long-term yields remain stable or move lower while investment in technology and innovation continues, that could provide further support for risk appetite and digital assets.

The pace of Bitcoin’s recovery has caught attention. Lee highlighted that Bitcoin’s roughly 23% weekly rebound comes after months of subdued trading activity, with perpetual trading activity falling to a three-year low earlier in August.

**‘Moving beyond scepticism’**

Menon characterized the current phase using a framework from legendary investor Sir John Templeton: “Bull markets are born on pessimism, grow on scepticism, mature on optimism and die on euphoria.” He said Bitcoin’s move back above $80,000, alongside improving sentiment and renewed participation across altcoins, suggests the market is gradually moving beyond the scepticism that has defined much of the recent period.

However, Menon cautioned that risks remain, noting that developments around Iran could put pressure on risk assets if they lead to higher energy prices or tighter financial conditions.

**Can Bitcoin hold above $80,000?**

The sustainability of the rally is now the key question. Lee said the market needs to see whether genuine spot demand can take over from the short squeeze. He noted that a sustained break above $80,000, backed by continued ETF inflows, would signal a meaningful shift in positioning and open the $82,000-$87,000 range.

But Lee does not expect a straight-line move higher. He predicted Bitcoin would trade broadly between $74,000 and $81,000 in the near term, with a pullback toward $75,000-$76,000 possible as profit-taking emerges after such a rapid rise — which could reflect a normal consolidation rather than an immediate reversal of the trend.

Leading cryptocurrencies and crypto-related equities continued to climb on Monday, August 24, as sustained demand drove the ongoing rally, Benzinga reported in a separate summary.

The next phase will depend heavily on whether institutional buying persists after forced liquidations have cleared, Lee said. For now, crossing $80,000 is only the first test — staying above it could be the real challenge.