Bitcoin Reclaims $81,000 as Spot ETF Flows Surge
Bitcoin broke above $81,000 Friday, marking a sharp reversal from last week's lows. The move was driven by renewed institutional demand and a rapid unwinding of leveraged short positions.
Bitcoin traded at an intraday high of $81,238 on Friday. The price settled near $80,800 by midday. This level represents a gain of more than 5% over the previous 24 hours. The total market capitalization rose to $1.62 trillion. This value is up from $1.54 trillion at the start of the session.
The rally followed reports that the CFTC sent draft crypto rules to the White House. This action signaled a regulatory pivot toward executive oversight. Bitcoin had previously fallen below $75,000 after the Senate failed to pass the CLARITY Act. The market had traded in a narrow range between $76,000 and $77,000 for most of the week.
Short Liquidations Drive Price Action
The sudden price spike forced leveraged traders to exit their positions. Data from Coinglass shows $238 million in Bitcoin short positions were liquidated. Long position liquidations totaled only $6 million. Across the broader cryptocurrency market, short liquidations exceeded $470 million. Long liquidations amounted to just over $57 million.
This imbalance indicates that the price rise was fueled by short covering. Traders who bet on falling prices were forced to buy at higher levels. This dynamic accelerated the upward momentum. The market cleared technical resistance levels quickly.
Spot ETF Inflows Support Momentum
Institutional demand played a central role in the recovery. Daily inflows into U.S. spot ETFs reached approximately $154 million. Analyst Lacie Zhang of Bitget Wallet noted this flow helped push the asset past $80,000. She described the move as stronger than a typical sentiment bounce.
Zhang pointed to easing long-term Treasury yields as a supporting factor. Lower yields reduce the opportunity cost of holding non-yielding assets. This environment favors risk-on positioning. The combination of ETF inflows and macro conditions created favorable conditions for Bitcoin.
Regulatory Path Shifts to Agencies
The CFTC is moving to assert authority under existing statutory frameworks. The SEC is expected to pursue a similar administrative route. This approach bypasses the stalled legislative process in Congress. It allows the administration to implement its regulatory roadmap through agency action.
Market participants interpreted this move as a positive signal. It provided clarity on the regulatory landscape without waiting for new legislation. The news helped restore confidence that had eroded after the CLARITY Act vote failed. The regulatory pivot coincided with the technical breakout above key resistance.
