Bitcoin climbed back above the $80,000 threshold on Thursday, extending the cryptocurrency market's recent rebound as sustained inflows into US spot Bitcoin ETFs, a surge in tech stocks, and an improving risk appetite among investors combined to lift sentiment. In contrast to earlier speculation that capital rotation from artificial intelligence stocks would be required to fuel crypto gains, both AI shares and Bitcoin are now simultaneously benefiting from a broadened appetite for risk.
The token touched an intraday high of $80,844.8, up as much as 3% before paring some of those gains. Earlier this week, Bitcoin had already broken past $80,000 for the first time since May, with record-scale liquidations of leveraged short positions serving as the primary catalyst behind that rapid ascent. As the price recovery takes hold, the underlying flow dynamics have also shown clear signs of improvement.
Aggregated data from media sources indicates that US-listed Bitcoin ETFs have recorded cumulative net inflows exceeding $2.6 billion over the past eight trading days, signalling a renewed build-up in institutional allocation demand. Meanwhile, Wall Street institutions have begun issuing more bullish Bitcoin price projections, marking a notable shift in market sentiment compared with the previous months.
Another noteworthy development has emerged from US crypto trading venues. Data shows that Bitcoin has regained a premium on Coinbase Global Inc (NASDAQ: COIN), the largest US exchange, relative to its price on Binance, the world's biggest platform by volume, for the first time in roughly three months. Lacie Zhang, research analyst at Bitget Wallet, noted that this could point to a return of institutional allocations channelled through ETFs, alongside improving overall demand on US trading platforms, although activity has yet to reach exceptionally strong levels.
The latest push above $80,000 coincided with a sharp rally in US technology stocks. After Nvidia Corp (NASDAQ: NVDA) delivered a robust business outlook, confidence in the AI investment cycle received a significant boost, lifting the broader tech complex. That price action has also challenged a previously popular thesis that Bitcoin would need investors to rotate capital out of high-flying AI equities into crypto assets to ignite its next leg higher. At least for now, the two asset classes are not exhibiting an obvious either-or dynamic, with AI-related shares and Bitcoin both drawing support from the same improvement in investor risk tolerance.
This dynamic carries particular weight for cryptocurrencies, which remain heavily reliant on market narratives and trading momentum. Rising prices can bolster investor sentiment and lure short-term traders back into the market, thereby increasing volume and generating fresh buying pressure. After months of declining prices and subdued mood, the restoration of confidence itself may now be contributing to the momentum behind Bitcoin's continued rebound.
Still, Bitcoin remains well below its all-time peak. The asset set a record near $126,000 in October of last year before undergoing a significant correction. This week's reclaim of $80,000 shows the price has moved decisively off its lows, but a substantial gap still remains to the historical high. More importantly, the move back above this level indicates that upward momentum has not faded immediately following the initial wave of short squeezes. The earlier surge was largely propelled by forced covering of leveraged bearish positions, and the ability to hold or extend gains beyond $80,000 increasingly hinges on active, directional buying demand rather than technical buying driven by short covering.
Tim Meggs, chief executive of LO:TECH, suggested that Bitcoin could continue to advance over the weekend, noting that a shortened trading week ahead typically brings reduced liquidity, which may amplify price swings. He believes liquidity will be the decisive factor shaping the next phase of Bitcoin's trajectory.
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