Bitcoin Breaks $80,000 on ETF Inflows and Regulatory Moves
Bitcoin crossed the $80,000 threshold on Friday, triggering a 4.49% jump in total market capitalization to $2.75 trillion. The move forced $170 million to $230 million in short liquidations within one hour.
Bitcoin price gained 5% in 24 hours to surpass the $80,000 level. This breakout extended a three-day gain to approximately 8%, pushing the asset above $81,000 at peak. The rally occurred despite recent rate increases from the Federal Reserve and the Bank of Japan.
Total digital asset market capitalization rose to $2.75 trillion. The Fear and Greed Index climbed to 73, marking a shift from uncertainty to greed among traders. This sentiment shift was driven by enhanced regulatory hopes and robust institutional demand.
Major Altcoins Join Price Rally
Ethereum rose 5.00% to hold above the $2,500 mark. Solana posted the largest gain among listed majors, climbing 10.25% to exceed $110. XRP increased 6.23% and traded above $1.35, while BNB advanced 4.02% to clear $750.
ETF Flows and Liquidations Drive Momentum
Spot Bitcoin exchange-traded funds recorded $159 million in net inflows on September 17. BlackRock’s IBIT was the only fund reporting positive net flows during that session. Conversely, spot Ethereum ETFs saw $39.24 million in outflows, extending a three-day negative streak.
Leveraged short positions faced rapid closures as prices accelerated. Estimates place one-hour short liquidations between $170 million and $230 million. These forced purchases intensified the rally and helped Bitcoin break through nearby resistance levels.
Regulatory Framework Submits to White House
The Commodity Futures Trading Commission sent a crypto market rule proposal to the White House. The filing reached the Office of Information and Regulatory Affairs on September 17. This action follows the Senate’s rejection of the CLARITY Act two days prior.
CFTC Chairman Michael Selig stated the agency is prepared to issue rules independently. The proposal signals regulators may use existing authority while Congress continues negotiations. Clearer federal oversight aims to reduce uncertainty in trading and compliance.
