Bitcoin Jumps to $79.5K as Treasury Boosts Long-Bond Buybacks and ETFs Pull In $1.9B

Bitcoin (BTC) climbed to about $79,500 on Aug. 21, its highest level in roughly three months, after rising more than 20% in its strongest week since March 2024. The rally cooled slightly, with BTC around $77,000 on Monday, Aug. 24, after paring gains. The move followed a U.S. Treasury decision aimed at improving liquidity in longer-dated debt. The department said it will at least double its liquidity-support buybacks for 10- to 30-year bonds, lifting the maximum size from $2 billion to at least $4 billion per operation starting Sept. 9. Markets responded quickly: long-term yields initially dropped, the U.S. dollar weakened, and investors rotated toward scarce stores of value such as Bitcoin and gold. BTC pushed toward $79.5K as long-term Treasury yields eased after the Aug. 19 buyback announcement. ETF inflows helped turn the rebound into a breakout. U.S. spot Bitcoin ETFs drew $517.2 million on Aug. 19 and $606.3 million on Aug. 20, according to Farside. Weekly Bitcoin ETF inflows totaled about $1.9 billion, while combined Bitcoin and Ethereum products attracted roughly $2.6 billion—a sharp reversal from the soft flows seen earlier in August. Coinpaper's recent coverage of ETF flows highlighted institutional demand returning as BTC cleared $69,000. Positioning added fuel. More than $4 billion in bearish crypto positions were liquidated during the rally, forcing short sellers to buy back into a rising market. The next near-term hurdle is $80,000. Recent price analysis points to the mid-$70,000 range as a key support zone after the breakout. Holding above it keeps $80,000 in play; a break lower could trigger profit-taking after an approximately 27% rebound from the Aug. 17 area. Attention now turns to the next macro catalysts, including Fed Chair Kevin Warsh's Jackson Hole speech and upcoming U.S. inflation readings. For now, the drivers are unusually straightforward: a Treasury bond-market intervention loosened financial conditions as institutional ETF demand resurfaced, and a crowded short market magnified the move.