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[BUSINESS] · United States · 56 sources

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Bitcoin climbs above $80,000 amid surging ETF inflows

Bitcoin experienced a significant rally on September 3, climbing back above the $80,000 threshold. The price surge was driven by a combination of improved macroeconomic sentiment and substantial capital inflows into US spot Bitcoin ETFs. On that day, Bitcoin ETFs recorded approximately $730.8 million in net inflows, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the movement with $454 million.

The rally was further supported by a shift in Federal Reserve expectations. Following comments from Governor Christopher Waller suggesting that interest rates could remain unchanged if inflation continues to cool, market probabilities for a September rate hike dropped. This dovish sentiment reduced the opportunity cost of holding non-yielding assets like cryptocurrency.

In addition to spot inflows, the market saw a squeeze in the derivatives sector, with approximately $443 million in cryptocurrency short positions being forcibly liquidated. The broader market also responded, as the total global cryptocurrency market capitalization rose to approximately $2.81 trillion. Ethereum ETFs also saw a return to positive territory, recording $141.4 million in net inflows on the same day.

Entities

Bitcoin · Bitcoin · Bitwise · BlackRock · Christopher Waller · Ethereum · Ethereum · Federal Reserve · Grayscale · IBIT · Morgan Stanley · Solana

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