Bitcoin Jumps 3% and Nears $80,000 as Crypto Rally Strengthens

Bitcoin climbed more than 3% on Tuesday and moved close to the $80,000 level as renewed inflows into U.S. spot Bitcoin exchange-traded funds and stronger investor appetite for risk assets extended the cryptocurrency's recent rally.

The world's largest cryptocurrency rose about 3.1% to $79,739, continuing gains that began last week when Bitcoin advanced more than 20% over three days.

The sharp rebound was initially supported by a major short squeeze, with more than $4 billion in bearish cryptocurrency positions liquidated as prices moved rapidly higher.

Investor sentiment also improved after the U.S. Treasury announced plans to increase purchases of longer-dated government bonds. The announcement briefly pushed bond yields lower and encouraged demand for risk-sensitive assets.

Bitcoin has also benefited from renewed institutional demand.

U.S. spot Bitcoin ETFs recorded approximately $1.92 billion in net inflows last week, marking their strongest weekly inflow since October 2025.

The return of institutional capital has helped strengthen the recent rally after months of weakness in the cryptocurrency market.

Bitcoin had been under pressure since reaching its previous cycle high in October, but the latest rise has brought the asset back toward levels not seen for several months.

Market analysts remain cautious over whether the rebound can be sustained.

Previous Bitcoin recoveries have sometimes lost momentum after sharp short-term gains, particularly when buying was driven heavily by the liquidation of bearish positions.

However, the latest rally has also been accompanied by stronger ETF inflows, higher trading activity and increasing demand in cryptocurrency derivatives markets.

Options-market activity has indicated growing investor interest in longer-term Bitcoin price gains rather than only short-term speculative trades.

The rally has also taken place without fresh Bitcoin purchases from Strategy, the world's largest corporate holder of the cryptocurrency.

The company has not added to its Bitcoin holdings for the past two weeks. Any return to buying by Strategy, combined with continued ETF inflows, could add further demand to the market.

Other major cryptocurrencies also moved higher.

Ether rose about 2% to $2,494, following Bitcoin's gains as sentiment across the wider digital-asset market improved.

Bitcoin's next immediate test is the $80,000 level, which traders are watching as a key psychological threshold.

A sustained move above that level could reinforce expectations that the recent recovery has further room to run, while weaker ETF demand or renewed selling pressure could slow the rally.

For now, strong institutional inflows and improving market sentiment continue to support Bitcoin as it approaches the $80,000 mark.

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