Bitcoin Pauses After Briefly Touching $79,500 as ETF Inflows, US Regulation Take Center Stage

Forecast Trend Report by Period

Bitcoin briefly touched $79,500 before pausing near recent highs, with the sustainability of its latest advance hinging on continued inflows into spot exchange-traded funds and progress on US crypto regulation.

BitFi Research, a Hong Kong-based digital-asset research firm, wrote in a report dated Aug. 24 that Bitcoin appears to have broken out of its previous trading range and entered a phase of sideways trading at elevated levels. The recent rally was shaped by a combination of geopolitical risks, long-term US Treasury yields and developments in crypto regulation, the firm said.

BitFi Research said uncertainty surrounding the Strait of Hormuz is fueling concerns over energy prices and inflation. It also pointed to pressure from the 30-year US Treasury yield, which at one point climbed to about 5.337%. Still, the firm said expanded buybacks of long-term Treasuries by the US Treasury could ease near-term supply pressure.