Bitcoin Stays Above $80,000 as ETF Demand and Risk Appetite Lift Sentiment

Bitcoin briefly climbed to $81,000 on Monday before easing back, remaining above the $80,000 level. The advance built on momentum from last week's U.S. Treasury announcement that it would conduct bond buybacks. Investor sentiment has turned notably upbeat. The Crypto Fear & Greed Index rose to 83, a reading categorized as Extreme Greed. Min Jung of Presto Research described the move as a catch-up trade rather than the start of a fresh bull cycle, pointing to tight liquidity, persistent inflation and geopolitical uncertainty as key risks. Jeff Mei of BTSE said he would only view the market as firmly bullish if Bitcoin could hold above $100,000 for a month. He added that the timing of Federal Reserve rate cuts remains unclear. Bitcoin gained more than $16,000 over the past week. Analysts said the magnitude of the move, along with the return of solid spot ETF inflows, reinforced the argument for a more durable rally. Ether rose 32% over the same period, XRP advanced 53%, and Solana gained 34%. Justin d'Anethan of Arctic Digital said the surge could mark a shift from an accumulation phase to an upward trend. He linked the catalyst to the Treasury's buyback decision and its impact on rates and broader capital conditions, adding that further signals from central banks or the Treasury could provide additional support. He also highlighted strong ETF inflows, higher on-chain activity and derivatives liquidity as crypto-native indicators to monitor. He said the outlook remains early but optimistic. Dominick John of Zeus Research said a sustained rally would likely require softer inflation, lower Treasury yields and a weaker U.S. dollar. He flagged this week's PCE Price Index as a key test of whether inflation is cooling enough to allow easier Fed policy and looser financial conditions. A softer reading could lift risk assets, while a hotter print could push yields higher and tighten liquidity. Jung noted that 30-year Treasury yields have reached their highest level since 2007. He said elevated long-term rates signal tighter financial conditions that could weigh on risk assets such as cryptocurrencies.