On August 21, the price of Bitcoin continued its rapid recovery, rising above the $77,000 mark for the first time since late May, helped by institutional capital inflows and improved liquidity in the US market.
On August 21, the price of Bitcoin continued its rapid recovery, rising above the $77,000 mark for the first time since late May, helped by institutional capital inflows and improved liquidity in the US market.
According to CoinMarketCap, BTC is trading near $78,000, up nearly 9% in 24 hours and about 19% in the previous seven days. This rally has pushed the price of BTC by more than $11,000 in about 48 hours.
This movement began after BTC pushed back from the $62,000–$63,000 range and broke through the resistance level near $65,000. It then confidently broke through $70,000, briefly lingered near $72,000, and continued, settling above $75,000.
Traders appear to be betting on positive momentum from several small regulatory victories this week, even as the likelihood of the Digital Asset Transparency Act (Clarity Act) passing this year has diminished.
Crypto traders cheered on Wednesday after the US Treasury Department announced an increase in government debt purchases. The move was seen by the market as a stabilizing factor and a positive signal for risk assets. President Donald Trump added to the optimism by hinting that Commodity Futures Trading Commission (CFTC) Chairman Mike Selig is working on a mechanism that would allow DeFi platform Hyperliquid to operate legally in the US.
Earlier this week, the US Securities and Exchange Commission (SEC) also proposed rules that would allow crypto startups to raise capital through token issuance.
According to SoSoValue, US spot Bitcoin ETFs recorded approximately $606 million in net inflows on August 20. This added to the previous day’s inflow of approximately $517 million, on August 19.
Based on the results of these two sessions, the total net purchases exceeded $1.1 billion. This acceleration indicates that institutional investors joined the price breakout, and did not leave this movement solely to derivatives traders who were closing their short positions.
Separately, spot Ether-ETFs attracted about $221 million as of August 20. XRP-focused funds added about $13 million, while Solana product funds received about $15 million.
