Wall Street buys are back! Bitcoin ETF attracted 3.5 billion US dollars in August and hit a new high of more than a year, 80,000 dollars became the focus of long and short competition

The Zhitong Finance App learned that the institutional capital that promoted Bitcoin's entry into the mainstream investment market on Wall Street is returning. According to the data, about 3.5 billion US dollars of capital flowed into a spot Bitcoin ETF listed in the US in August, the largest monthly net inflow in more than a year. As ETF buying heats up again, Bitcoin accumulated a cumulative increase of about 25% in August, recording the best monthly performance since November 2024.

However, Bitcoin is currently facing obvious resistance around 80,000 US dollars, and this level is just close to the average holding cost of a large number of spot ETF investors, so whether ETF funds can continue to flow in may become a key factor in determining whether this round of rebound can expand further. According to data, US-listed Bitcoin ETFs received a net inflow of about US$3.5 billion in August, the highest level since July 2025.

ETF capital poured in US$3.5 billion in August, the biggest monthly inflow in more than a year

Bitcoin previously experienced a prolonged period of decline. Many investors who bought spot Bitcoin ETFs at a high level lost money for a while, which also weakened the market enthusiasm of Bitcoin in the early days of entering the traditional financial system.

However, there was a marked change in the market environment in August. US Treasury Secretary Bessent is trying to reduce government financing costs by expanding long-term US Treasury bond repurchases, rekindle market interest in “currency depreciation transactions,” and push investors to reallocate scarce assets such as gold and Bitcoin.

Meanwhile, after the Bitcoin price broke through a critical position, a large number of bearish positions were forced to close, further amplifying the upward trend. Driven by multiple factors, Bitcoin accumulated a cumulative increase of about 25% in August, the best monthly performance since November 2024.

Matt Hougan, chief investment officer of Bitwise Asset Management, said that investors have been waiting for a reason to rebuy crypto assets for the past few months.

He said that although cryptocurrency prices continued to fall until now, market fundamentals were still strong, and the policy signals released by Bezent in early August just provided investors with a reason to re-enter the market, and capital poured in rapidly thereafter. If ETF funds continue to flow in for the rest of the year, this could be a major turning point for the Bitcoin market.

Benson's characteristics fuel “currency depreciation transactions” and the weakening of the US dollar further favors Bitcoin

One of the important macroeconomic factors driving the current round of Bitcoin's rebound is the market's renewed focus on the US fiscal situation and the long-term purchasing power of the US dollar.

Bessent said earlier that the US Treasury will increase long-term US Treasury bond repurchases in an attempt to reduce long-term bond yields and government financing costs. This policy signal not only affected the US Treasury bond market, but also reactivated so-called “currency depreciation transactions.” Investors are beginning to increase the allocation of alternative assets such as Bitcoin and precious metals to hedge against the risk of widening fiscal deficits and declining purchasing power of fiat currencies.

Fiona Cincotta, senior market analyst at StoneX, said that concerns about the US financial situation are driving investors to increase demand for alternative assets such as Bitcoin and precious metals, while the recovery in spot Bitcoin ETF capital inflows and the market's expectations for a more clear US cryptocurrency regulatory framework have also provided additional support for Bitcoin.

At the same time, Bezent's efforts to reduce long-term US bond yields are also putting pressure on the US dollar, thereby further increasing the appeal of risky assets such as Bitcoin.

According to Dan Morehead, founder and managing partner of Pantera Capital Management, Bitcoin and the entire cryptocurrency market are essentially a kind of macro-transaction. In an environment where governments continue to expand the money supply and fiat currencies are under pressure to depreciate, scarce assets such as Bitcoin are expected to benefit.

Improved cryptocurrency regulatory expectations add further impetus to the rebound

In addition to macroeconomic factors, expectations of an improvement in the US cryptocurrency policy environment have also become an important catalyst for this round of the market.

As Bezent announced the expansion of long-term US debt repurchases, US President Trump held a meeting with a number of digital asset industry executives and urged the Senate leadership to push for the passage of the long-awaited cryptocurrency market structure bill.

A more clear regulatory framework has always been viewed by the market as an important condition to push traditional financial institutions to further enter the digital asset market. As a result, expectations of fiscal policy, “currency depreciation transactions”, and improvements in the regulatory environment appeared simultaneously, enabling Bitcoin to quickly gain new upward momentum.

As the price broke through a key technical position, a large number of investors who had previously bet on Bitcoin's decline were forced to make up short positions, further driving up the price. However, compared to the short-term market driven simply by closing short positions, whether ETF funds can continue to flow in is more important because this indicates that real demand for new investment is re-entering the market.

$80,000 to $83,000 is a key region ETF investors are close to “unbundling”

Citigroup strategists pointed out that Bitcoin's recent rebound has gradually brought the price closer to the weighted average purchase cost of US spot Bitcoin ETF investors.

According to the bank's estimates, the average cost for these ETF investors is around $80,000 to $83,000. The bank's strategists Alex Saunders and Vinh Vo believe that the flow of ETF funds is an important factor driving the price of Bitcoin.

This cost area also makes the current area around $80,000 a particularly noteworthy location. Previously, the market decline caused many ETF investors to lose money, but as Bitcoin returns to around $80,000, this group of investors is gradually getting closer to break-even.

If Bitcoin can break through and stabilize above $80,000 to $83,000, it may help repair the impact of the previous bear market on ETF investors' confidence, and re-establish a positive cycle where capital inflows drive up prices and further attract new capital.

However, on the other hand, if a large number of ETF investors who were previously covered choose to sell close to return, it may also cause obvious selling pressure in this price area.

Bitcoin was blocked near $80,000 and fell to $76,393 on Tuesday

Despite strong performance in August, Bitcoin was unable to successfully break through the pressure of around $80,000 after entering September. On Tuesday, Bitcoin once fell about 3% to 76,393 US dollars, showing that after experiencing a sharp rebound of 25% in August, the market is still clearly divided in key price areas.

This also means that Bitcoin is currently in an important testing phase of this round of rebound. The previous increase was partly driven by bears' recovery, and if the market is to continue further in the future, more continuous additional capital may be needed.

As a result, spot Bitcoin ETFs have become an important indicator for market observation. If ETFs can continue to attract capital inflows, it will mean that Wall Street investors are re-establishing long-term allocation requirements for Bitcoin; if capital inflows rapidly weaken, it may increase the risk that Bitcoin will continue to fluctuate around $80,000 or even fall back.

BlackRock's iShares Bitcoin Trust ETF (IBIT.US) became the biggest beneficiary of the resurgence of funds into Bitcoin ETFs in August. According to data, IBIT accounted for about 88% of the overall net inflow of US Bitcoin ETFs in August.

Based on the overall capital inflow of 3.5 billion US dollars, this means that the vast majority of new ETF funds are concentrated in BlackRock's products, further highlighting IBIT's dominant position in the US spot Bitcoin ETF market.