Bitcoin’s price has risen to $78,000, driven by U.S. Treasury liquidity measures and renewed inflows into exchange-traded funds, according to analysts at Bernstein.
The U.S. Treasury announced on Sept. 9 plans to increase liquidity-support buybacks for longer-dated Treasuries to $4 billion per operation, a move coinciding with a procedural vote for the Clarity Act on Sept. 15. These developments have been linked to broader market momentum, with Bitcoin reaching $79,500 before retreating slightly.
Bitcoin ETF inflows, which peaked at $7 billion in May–June, saw $1.6 billion in net inflows this week. BlackRock’s IBIT fund added $503 million on Thursday, reflecting renewed investor interest. Analysts at Bernstein highlighted historical correlations between Bitcoin’s performance and liquidity expansion, though they cautioned against over-interpretation of macroeconomic factors.
Strategy, a major bitcoin holder, sold 0.8% of its holdings while maintaining cash reserves sufficient to cover 2.8 years of dividends. The firm holds 840,447 BTC, acquired at an average price of $75,385, generating over $2 billion in unrealised profit.
Bernstein’s lead analyst, Gautam Chhugani, noted the firm’s focus on historical trends rather than macroeconomic forecasting, stating: “We are not macro experts, but we do know bitcoin historically has had a positive reaction to liquidity expansion.”
Written by Oliver Grant
Markets Desk
