• Bitcoin climbed above $77,000, marking its largest weekly gain since March 2023.

  • U.S. spot bitcoin ETFs recorded $606 million in net inflows on Aug. 20, the biggest single-day total since May 1.

  • Ether ETFs added $221 million as short liquidations topped $3 billion over two days.

  • The move followed the U.S. Treasury’s decision to at least double long-duration bond buybacks starting Sept. 9.

Bitcoin extended its sharp rebound on Friday, pushing past $77,000 after the U.S. Treasury announced an expansion of its long-bond buyback program, according to CoinDesk.

The cryptocurrency has gained roughly 23% over the week, its strongest weekly advance since March 2023, as markets interpreted the Treasury’s action as a signal of potential financial repression favoring hard assets. Bitcoin traded near $75,500 earlier Friday before climbing higher, with its market capitalization exceeding $1.5 trillion.

U.S. spot bitcoin exchange-traded funds logged $606 million in net inflows on Aug. 20, the largest daily haul since May 1, data from SoSoValue cited by BeInCrypto showed. BlackRock’s IBIT accounted for approximately $503 million of that total. Spot ether ETFs simultaneously attracted $221 million, extending a four-day inflow streak, as reported in CoinDesk’s live updates.

The Treasury said it would raise the size of regular buybacks of 10- to 30-year securities from $2 billion to at least $4 billion per operation from Sept. 9 through Nov. 4. Treasury Secretary Scott Bessent told CNBC the amount “could be more than the $4 billion per issue,” according to a Reuters report. Analysts noted the measure is not quantitative easing or yield-curve control but could signal readiness for more aggressive steps if long-term yields remain elevated.

The price surge also triggered heavy short covering. Roughly $1.2 billion in short positions were liquidated over 24 hours through Friday, bringing the two-day total to more than $3.8 billion, per CoinGlass data reported by CoinDesk. Bitcoin alone accounted for the majority of the wipeouts as leverage unwound in thin summer trading conditions.

While the Treasury’s buybacks remain modest relative to overall debt issuance, the announcement has reinforced the narrative that policymakers may prioritize capping borrowing costs, a development historically supportive of bitcoin and other scarce assets. Investors continue to monitor whether the inflows and momentum can sustain beyond the immediate reaction.

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