Bitcoin Just Had Its Best Week In More Than Three Years, But The $80,000 Threshold Is Proving Hard To Hold

Bitcoin is struggling to hold above $80,000 on Wednesday after briefly climbing past $81,000 as traders appear to be taking profits following the cryptocurrency's strongest weekly rally in more than three years.

The world's largest cryptocurrency traded slightly above $78,000 at 1:24 p.m. ET after gaining earlier in the session. Bitcoin has climbed roughly 22% since Aug. 20, but its advance has slowed since.

The rebound accelerated after the Treasury Department said last week it would at least double the size of liquidity-support buybacks for longer-dated government debt, increasing the maximum purchase from $2 billion to at least $4 billion per operation beginning Sept. 9.

The announcement helped push longer-term Treasury yields lower and added to concerns among some investors about the dollar, increasing demand for alternative assets. Bitcoin climbed above $80,000 on Tuesday for the first time in more than three months and is heading for its strongest monthly performance since November 2024.

Inflation remains a key consideration for traders assessing whether the Federal Reserve has room to lower borrowing costs. The personal consumption expenditures price index rose 3.7% in July from a year earlier, unchanged from June and remaining well above the Fed's 2% target. Core PCE, which excludes volatile food and energy prices, increased 0.2% from June and 3.3% annually.