Bitcoin has shifted from a shallow pullback to a powerful rebound, with institutional demand helping limit losses and pushing prices back toward key resistance. After avoiding the deep capitulation seen in previous downturns, BTC advanced roughly 25% this week and traded near $79,500. Traders now view the $78,000 to $80,000 zone as a crucial test, and a decisive breakout could strengthen the path toward $100,000. Standard Chartered has said Bitcoin could reach $100,000 by year-end.
The rally accelerated after the U.S. Treasury increased its buyback operations for longer-dated government bonds from $2 billion to $4 billion. That helped push the 30-year Treasury yield lower from 5.34% to roughly 5.19%, improving investor appetite for riskier assets. Around $4 billion in bearish crypto positions were liquidated on Thursday and Friday, forcing short sellers to buy back and adding further momentum. Analysts including Shawn Young and Jeff Ko described the Treasury move as a supportive policy signal, while cautioning that it does not represent quantitative easing.
Spot Bitcoin ETFs delivered powerful institutional demand. U.S. funds attracted roughly $1.6 billion in net inflows this week, with BlackRock's IBIT alone receiving $503 million on Thursday. Analyst Ted Pillows reported even stronger weekly buying of $1.92 billion, the strongest weekly inflow since October 2025. Combined ETF assets have climbed above $85 billion, compared with roughly $70 billion in June. Bernstein linked the recovery to improving liquidity, stronger ETF demand, and a more supportive regulatory environment.
Strategy has also moved back into profit following Bitcoin's advance. The company holds 840,447 BTC at an average price near $75,385, putting its position above $2 billion in unrealized gains with Bitcoin around $78,000. Strategy recently sold about 0.8% of its holdings for corporate funding needs, and Bernstein expects the company could resume Bitcoin purchases later.
