Bitcoin breached the $80,000 threshold this Monday, marking its highest level since May 15, as the digital asset extends a broad-based recovery across the cryptocurrency market over the past week. Data reveals that the flagship cryptocurrency has rebounded approximately 38% from the recent lows recorded in late June and early July, when prices briefly dipped below $58,000.

This upward trajectory coincides with the return of traditional institutional investors. Last week, US-listed spot Bitcoin exchange-traded funds (ETFs) recorded net inflows of approximately $1.9 billion, representing the largest single-week inflow since October 2025. Market analysts attribute the accelerated recovery to last week's decline in US Treasury yields, which alleviated months of tightening financial conditions. The US Treasury Department has doubled its long-term debt buyback program and extended it through early November, financing these purchases through increased issuance of short-term securities.

Monday's additional surge was driven by Treasury signals suggesting potential utilization of its nearly $1 trillion General Account funds to support the buyback initiative. Market attention now shifts toward the macroeconomic outlook, with several significant economic events and data releases scheduled this week, including the Federal Reserve's preferred inflation gauge—the Personal Consumption Expenditures (PCE) price index.

Thadeu Dos Santos, regional director at foreign exchange brokerage Infinox, noted that core PCE data will be closely monitored to assess whether underlying price pressures continue to ease. Should the figures exceed expectations, this could bolster Treasury yields and strengthen the US dollar; conversely, softer inflation data might diminish expectations for further monetary tightening.