The price of Bitcoin increased on Tuesday, reaching a high of $79,739 as part of a multi-day price increase for the digital currency. The movement occurred following reports of substantial inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) and a recent announcement from the U.S. Treasury regarding government bond purchases.
On Tuesday, market data showed Bitcoin’s price rose by 3.1% to $79,739. This followed a period last week when its value increased by over 20% across three days, marking the largest three-day percentage gain for the cryptocurrency since 2023. The price of Ether, another major cryptocurrency, also increased, trading 2% higher at $2,494.
The price movement last week coincided with the liquidation of over $4 billion in short positions on cryptocurrencies, according to market data. Additionally, the U.S. Treasury announced it would increase its purchases of longer-dated government bonds. This announcement was followed by a temporary decrease in bond yields.
Data on institutional investment showed that U.S.-based spot Bitcoin ETFs recorded net inflows totaling $1.92 billion last week. According to reports, this figure represents the largest weekly inflow since October of the previous year.
Market analysis firms have provided commentary on the price activity. In a research note published Monday, financial research firm Fundstrat pointed to several factors, including the inflows into Bitcoin and Ether ETFs, an increase in trading volume, and the creation of more stablecoins. Fundstrat also observed activity in the options market, noting that investors were acquiring exposure to potential Bitcoin price gains further into the future.
The firm’s note also mentioned that the price increase occurred while MicroStrategy, a significant corporate holder of Bitcoin, had not made any new purchases in the preceding two weeks, according to available data.
Separately, brokerage firm BTIG noted in its analysis that a similar price increase in January 2023 was followed by a decline before the price later found support near its 200-day moving average.
