Bitcoin Just Had Its Best Week In More Than Three Years, But The $80,000 Threshold Is Proving Hard To Hold

Bitcoin is struggling to hold above $80,000 on Wednesday after briefly climbing past $81,000 as traders appear to be taking profits following the cryptocurrency's strongest weekly rally in more than three years.

The world's largest cryptocurrency traded slightly above $78,000 at 1:24 p.m. ET after gaining earlier in the session. Bitcoin has climbed roughly 22% since Aug. 20, but its advance has slowed since.

The rebound accelerated after the Treasury Department said last week it would at least double the size of liquidity-support buybacks for longer-dated government debt, increasing the maximum purchase from $2 billion to at least $4 billion per operation beginning Sept. 9.

The announcement helped push longer-term Treasury yields lower and added to concerns among some investors about the dollar, increasing demand for alternative assets. Bitcoin climbed above $80,000 on Tuesday for the first time in more than three months and is heading for its strongest monthly performance since November 2024.

Inflation remains a key consideration for traders assessing whether the Federal Reserve has room to lower borrowing costs. The personal consumption expenditures price index rose 3.7% in July from a year earlier, unchanged from June and remaining well above the Fed's 2% target. Core PCE, which excludes volatile food and energy prices, increased 0.2% from June and 3.3% annually.

Investors are also looking for fresh signals from Federal Reserve Chair Kevin Warsh about the path for interest rates. The Federal Reserve has kept its benchmark rate at 3.5% to 3.75%, with policymakers weighing persistent inflation against other signs of weakness in the economy.

Institutional demand has provided another source of support. U.S.-listed spot Bitcoin exchange-traded funds recorded about $314 million of net inflows Tuesday, extending a run of strong daily inflows, according to Bloomberg. The renewed ETF buying follows months of softer demand that contributed to Bitcoin's decline from its 2025 highs.

The sharp rebound, however, has left traders watching whether buyers can push decisively through the current resistance area. IG Australia analyst Tony Sycamore told Bloomberg that $80,000 to $83,000 remains a difficult zone following the rapid advance. A sustained break above that range could open a path toward $95,000 to $100,000, he said.

Bitcoin is still well below its October 2025 record above $126,000. After briefly topping $81,000 during the latest rally, the cryptocurrency had slipped back below $80,000 on Wednesday as traders locked in some of the past week's gains.