Bitcoin holds $79k after powerful rally as eight-day ETF inflow streak brings $2.8b into funds and investors await federal reserve signals

2:24

Bitcoin remained close to $79,000 on Thursday following its powerful recent rally, as renewed institutional investment helped support the world's largest cryptocurrency while traders awaited fresh signals on US monetary policy and regulation.

Bitcoin traded around $79,000 after climbing as high as approximately $82,000 earlier in the week, representing a dramatic recovery from its recent lows. The cryptocurrency gained roughly 23% over seven days before pausing as investors took profits.

One of the strongest signals supporting the recovery has come from US spot Bitcoin exchange-traded funds. The funds recorded eight consecutive days of net inflows, their longest positive streak since April, attracting approximately $2.8 billion during the period.

An ETF, or exchange-traded fund, allows investors to gain exposure to Bitcoin through conventional investment accounts without directly purchasing and storing the cryptocurrency. The renewed demand suggests institutional and mainstream investors have participated alongside speculative traders in Bitcoin's recovery.

Attention is now turning towards Federal Reserve Chairman Kevin Warsh's Jackson Hole speech, which could influence expectations for US interest rates. Higher interest rates and bond yields can make non-yielding assets such as Bitcoin less attractive, while lower yields and a weaker dollar can increase demand for alternative assets.

The regulatory environment is another major factor. President Donald Trump has recently increased pressure on Congress to advance the CLARITY Act, legislation intended to establish clearer rules governing America's digital-asset industry. Bitcoin's ability to remain around $79,000 despite profit-taking therefore represents an important test of the rally.

Highlighting the next major challenge for Bitcoin, Glassnode said, "Every overhead structure we track now sits between $81K and $86K; that band is where the recovery's demand meets its test."

For investors, the question has shifted from whether Bitcoin could recover from its recent decline to whether institutional ETF demand is strong enough to support another attempt at breaking decisively above $80,000.