Bitcoin gains 20% as debasement trade returns, drawing ETF inflows and liquidity bets

  • Bitcoin rallied from about $63,500 to above $80,000 as the debasement trade returned and liquidity expectations improved.
  • QCP Capital identified approximately $2.8 billion in spot support, while U.S. spot bitcoin ETFs attracted about $1.9 billion last week and the rally added $300 billion to market capitalization.
  • Arthur Hayes said Bitcoin may have passed its price bottom and could reach $250,000 if rising debt leads to yield suppression and continued money creation.

Bitcoin has risen 20% since mid-August, with the broader rally taking it from about $63,500 to above $80,000 and adding $300 billion to its market capitalization within hours. QCP Capital said approximately $2.8 billion in spot support showed that the move was underpinned by underlying market structure rather than derivatives positioning alone. Gold also advanced, U.S. spot bitcoin exchange-traded funds attracted approximately $1.9 billion last week, and record short liquidations added momentum. Arthur Hayes, a BitMEX co-founder who now runs the Maelstrom Fund, said Bitcoin may have passed its price bottom and could reach $250,000 if policymakers continue creating money. Hayes linked rising U.S. debt to possible de facto yield curve control, which would suppress Treasury yields and expand the money supply, potentially supporting Bitcoin and altcoins. Gadi Chait of Xapo Bank said Bitcoin’s roughly 23% weekly rise was its strongest since March 2023 and argued that fiscal pressures and currency-debasement concerns strengthen Bitcoin’s fixed-supply investment case. The reported 20%, 23% and 25% increases reflect different periods or descriptions of the broader rally.

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