Bitcoin Nears USD 80,000: Can The Latest Rally Sustain In The Long Term?

Bitcoin has continued its upward momentum, with the cryptocurrency gaining over the past week as broader buying interest supports the market. The latest move comes as investors assess the factors driving Bitcoin’s recovery and whether the rally can sustain its momentum.

The world's first cryptocurrency was trading at USD 77,610.52, up 1.45 per cent in the last 24 hours and 22.69 per cent over the past week. It touched USD 79,463.71 earlier in the morning. However, Bitcoin remains 38.5 per cent below its all-time high of USD 126,198.07.

What Is Behind Bitcoin’s Latest Rally?

The recent gains have brought Bitcoin closer to the USD 80,000 mark. Several factors are contributing to the latest upward momentum, even as investors remain focused on whether the rally can continue.

Rajagopal Menon, Vice President, WazirX, said three key factors are supporting the crypto rally: regulatory clarity, liquidity and institutional demand. He pointed to improving liquidity, a more supportive US regulatory environment, strong spot Bitcoin ETF inflows and the unwinding of short positions. “When regulation improves, liquidity expands, and institutions keep buying. The signal is hard to ignore,” Menon added.

Prateek Gupta, Head of Business, Mudrex, said Bitcoin’s move towards USD 80,000 should be viewed as a recovery rather than a fresh breakout. “The latest leg higher is being driven primarily by growing expectations of Fed rate cuts,” he said, following softer inflation and employment data.

He added that ETF flows have turned positive, with around USD 1.5 billion in net inflows across 13 trading sessions in August, although the flows remain volatile.

What Lies Ahead For Bitcoin?

At current levels, Bitcoin has recovered a meaningful portion of its earlier decline but remains well below its previous peak.

Gupta said the outlook remains positive but uncertain, with differing analyst forecasts reflecting the unpredictability of the market. “Bitcoin’s outlook remains constructive but highly uncertain, and the wide range of analyst forecasts reflects that,” he said.

Menon said USD 80,000 remains an immediate psychological resistance level, while a sustained move above USD 87,500 could make the USD 100,000 level a more realistic target.

Looking beyond the current rally, experts said Bitcoin’s next move will depend on broader market conditions. Vikas Gupta, Country Manager, India, Bybit, said institutional participation, regulatory clarity, liquidity and adoption will remain key. “The current move is significant, but crypto investors should focus on the broader market fundamentals rather than treating a short-term rally as a guarantee of further price appreciation,” he added.