On the Chain: Bitcoin eyes US$80,000 after biggest weekly dollar gain on record

Bitcoin is threatening to break through US$80,000 after recording its largest weekly dollar gain on record, as renewed institutional buying and a shift in US Treasury policy injected fresh momentum into crypto markets.

Bitcoin was trading around US$78,700 early Tuesday, having briefly touched US$80,000 during the latest session.

The cryptocurrency gained about 22.7% in the week to August 23, adding US$14,264 to close at US$77,387 - its largest absolute weekly increase ever and its strongest percentage performance since 2023.

ETF money returns

Institutional demand has played a major role in the rally.

US spot Bitcoin exchange-traded funds attracted about US$1.92 billion of net inflows in the week ended August 21, their strongest weekly intake since October 2025. Spot Ethereum ETFs added another US$697.2 million, taking combined Bitcoin and Ether ETF inflows to about US$2.6 billion.

The return of ETF buying marks a sharp change after months of softer institutional demand and has provided evidence that the rally is being supported by spot-market buying rather than solely by traders covering short positions.

Treasury move sparks crypto rally

The catalyst came after the US Treasury said on August 19 that it would at least double the maximum size of its liquidity-support buybacks for longer-dated Treasury securities, lifting individual operations from US$2 billion to at least US$4 billion from September 9.