Bitcoin trades near $78,600 after surging above $80,000 for the first time since May, with the rally facing profit-taking pressure at resistance levels even as institutional inflows and dovish policy signals fuel continued momentum.
Bitcoin hit a high of $81,237.94 in Asian trading on August 25, marking its strongest performance in months. The cryptocurrency is up 28% so far in August, set for its biggest monthly gain since November 2024, according to Reuters.
The rally has been driven by multiple factors converging simultaneously. U.S. Treasury Secretary Scott Bessent’s announcement of expanded bond buybacks to cap long-end yields weakened the dollar, making assets like bitcoin attractive as a hedge against currency debasement. Tim Sun, senior researcher at HashKey Group, noted that “Bessent’s messaging has reinforced the market’s view that, at least through the midterm elections, U.S. policymakers may have a lower tolerance for a further rise in long-end yields,” creating a supportive backdrop for bitcoin and gold.
Regulatory optimism also lifted sentiment. President Trump called on Congress last week to pass legislation bringing clearer definitions to the cryptocurrency sector, and bitcoin has risen 16% since that announcement. Standard Chartered’s Geoff Kendrick called the Treasury action “exactly the type of thing bitcoin loves,” noting that bitcoin was designed to allow investors to avoid such interventions.
Institutional Demand Meets Technical Resistance
Spot bitcoin ETFs recorded their strongest weekly inflows of 2026, pulling in $1.9 billion, according to market data. This institutional demand has been a key pillar of the rally, shifting momentum from short-squeeze dynamics to sustained buying pressure.
However, the $80,000 level represents a critical test. Analysts warn that profit-taking could intensify near this resistance point, where earlier buyers move into gains. Tony Sycamore, market analyst at IG, said: “A sustained break above here would open the door for a move towards $95,000–$100,000,” but cautioned that consolidation or pullbacks remain likely in the near term as traders reassess valuations.
The $78,000-to-$80,000 zone has historically capped advances, and short-term holders continue to watch for signs of capitulation. If bitcoin holds above $80,000 on a sustained basis, the next technical targets would emerge significantly higher, but failure to break decisively could trigger a retracement toward $75,000 support levels.
Sources
- Reuters — Bitcoin’s rally above $80,000, Treasury buyback impact on dollar, and analyst commentary on debasement trade
- Yahoo Finance — Bitcoin price history and daily trading range for August 25, 2026
- Proactive Investors — Bitcoin ETF weekly inflow data ($1.9 billion largest weekly inflow of 2026)
- Bitcoin Foundation — Bitcoin’s 25% weekly surge and ETF inflow contribution to rally
