Bitcoin continued its rally on Tuesday, driven by accelerating capital inflows into spot ETFs and a recovery in risk appetite across global markets. The largest cryptocurrency rose 3.1 percent to 79,739 dollars, nearing the 80,000 dollar threshold.
Following the sharp volatility that began in the cryptocurrency market last week, Bitcoin gained over 20 percent in a three-day period. This performance was recorded as the strongest three-day rally seen since 2023, while it was noted that over 4 billion dollars in short positions were liquidated during the same period.
Among the factors supporting the rise, the US Treasury's announcement that it would double its long-term government bond purchases also stood out. The brief decline in bond yields following the decision increased demand for risk assets.
Interest on the institutional side has also strengthened again. Spot Bitcoin ETFs trading in the US saw 1.92 billion dollars in net inflows last week. This amount was recorded as the highest weekly inflow since the period when Bitcoin reached its previous cycle peak in October.
Nevertheless, cautious views regarding the sustainability of the rally remain in the markets. Given that Bitcoin has been in a long-term downtrend since October, some analysts point out that the current movement could be short-lived, similar to the recovery at the beginning of 2023.
News Source: 12punto
