Bitcoin Breaks Psychological Level, Investors Warned of Volatility
Bitcoin (BTC) has once again shown significant positive momentum in the global crypto market. After trading around US$64,000 on 17 August, the crypto asset with the largest market capitalisation managed to break through the psychological level of US$80,000 on 25 August 2026.
This impressive movement was driven by a combination of shifting global macro sentiment, particularly the US Treasury buyback policy, as well as strong inflows into spot bitcoin Exchange Traded Funds (ETFs).
Chief Marketing Officer of Indodax, Aloysia Dian, said the increase was not merely a short-term fluctuation, but a reflection of measurable changes in sentiment across various market indicators.
“Bitcoin’s momentum in recent days shows a fairly significant shift in sentiment. The price strengthening has coincided with rising demand through spot bitcoin ETFs and improving market conditions. However, a rapid rally still needs to be balanced with discipline in managing risk,” Aloysia said in an official statement on Saturday (29/8).
One of the main drivers of the increase was the Treasury buyback policy, or the repurchase of debt securities by the US Department of the Treasury. The move was taken to maintain liquidity and smooth trading in financial markets.
The increased repurchase of long-term government bonds had put pressure on yields. This encouraged investor interest to return to risk assets, including cryptocurrencies.
From the institutional demand side, data from SoSoValue recorded that spot bitcoin ETFs in the US booked a net inflow of US$2.57 billion during the period of 17-25 August 2026. This optimism was reinforced by Crypto Quant data showing bitcoin’s Bull Score jumped from 30 to 80 within just one week.
The acceleration in bitcoin’s price became sharp from 19 August, when the price surged more than 20% in three days. The increase was also reinforced by a short squeeze that forced traders with sell positions to close them, until BTC eventually broke through US$80,000.
Although buy signals are strengthening, Aloysia reminded that an overly rapid pace of increase carries high volatility risk. She advised investors not to get caught up in euphoria or simply chase prices (FOMO).
“ETF fund flows are a strong indicator of demand, but their movement still needs to be read together with macro conditions and overall liquidity. Bullish momentum does not always move in one direction,” she explained.