Bitcoin recovers to $80,000 on institutional and retail demand

Bitcoin surpassed the $80,000 threshold this week for the first time since May, driven by renewed institutional interest and growing retail participation. Bloomberg reported on Thursday that the recovery reflects a broader improvement in speculative market sentiment. This shift has also boosted interest in artificial intelligence investments, while inflows into bitcoin exchange-traded funds have resumed.

Data cited in the report indicates that investors added $2.6 billion to U.S. bitcoin ETFs over the last eight trading sessions. This surge in demand has caused trading on Coinbase to trade at a premium compared to Binance, a development not seen in three months. Lacie Zhang, a research analyst at Bitget wallet, noted that these trends suggest institutional allocation through ETFs is returning. However, she added that broader U.S. exchange demand is improving but has not yet become decisively strong.

BlackRock Head of Digital Assets Robbie Mitchnick told CNBC on Wednesday that the rebound supports the view that bitcoin diversifies portfolios. He observed that the asset tends to rally when investor sentiment is weak in other markets. Mitchnick pointed out that equities and fixed income markets have faced challenges recently, allowing bitcoin to benefit from its distinct nature as an emerging store of value. This recovery has occurred despite recurring concerns regarding the size of U.S. debt and deficits.

CoinDesk reported that the crypto rally began last week, with Solana emerging as the largest gainer. The asset rose 13.5 percent over the previous 24 hours and 44 percent since early last week. Earlier reports from August 18 indicated that large holders had purchased approximately 43,000 bitcoin over the preceding 60 days, a sum worth about $2.75 billion at the time. These significant buyers resumed accumulation when the coin traded around $60,000, following a period where the price had dropped by about 50 percent from its October high due in part to retail traders exiting the market.