Bitcoin faces $80,000 test as thinner weekend liquidity looms
Bitcoin is approaching the $80,000 resistance level, driven by macroeconomic factors like U.S. Treasury bond-buyback plans and shifting liquidity expectations. Analysts warn that while the rally is significant, the market lacks deep conviction and remains vulnerable to weekend liquidity drops and geopolitical risks.
Why it matters
Bitcoin's price action is increasingly tied to broader U.S. macroeconomic policy, making it a key indicator for risk-asset sentiment.
Bitcoin BTC $ 77,415.96 heads into Friday’s U.S. session having hit its highest level since May as the U.S. Treasury’s bond-buyback plan continues to fuel appetite for risk.
The largest cryptocurrency recently traded near $78,000 after climbing to as high as $79,400, leaving $80,000 as the immediate test before trading in exchange-traded funds (ETFs) shuts for the weekend. The spot U.S. bitcoin ETFs posted net inflows of $606 million on Thursday, the most since May 1.
“The rally is primarily a macro story rather than a crypto specific one,” CoinShares’ head of research, James Butterfill, said in a statement. “Bitcoin remains acutely sensitive to shifts in liquidity expectations and real yields, and it has responded accordingly.”
His comments came after a lower-than-expected CPI print and weaker payrolls data that followed the Treasury’s announcement that it planned to take action to bring down long-dated bond yields.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in