Bitcoin Reclaims $80,000 as ETFs Attract $731 Million
Bitcoin rebounded sharply on 3 September, rising 5.07% from an intraday low of $76,992 to close at $81,272. The rally was supported by improved risk appetite, easing expectations for US Federal Reserve rate hikes and strong inflows into US spot Bitcoin ETFs.
Farside Investors reported net inflows of $730.8 million on 3 September, following $101.1 million on 2 September. BlackRock’s IBIT led with $454 million, followed by ARKB with $137.7 million, FBTC with $74.4 million and BITB with $24.8 million. HODL and BTCW recorded outflows.
Federal Reserve Governor Christopher Waller said weaker inflation data could support holding rates steady, helping reduce Treasury yields and the opportunity cost of holding Bitcoin. About $443 million in crypto short positions were liquidated during the rally, including roughly $205 million in Bitcoin shorts, amplifying the move through short covering.
Ethereum ETFs also returned to inflows, attracting $141.4 million on 3 September after a $48.2 million outflow the previous day. The total crypto market capitalisation rose to $2.81 trillion, while Bitcoin dominance reached 57.82%.
For traders, the key resistance is around $82,793. A decisive break could open a path towards $90,000, while support is identified near $75,674 and $71,781. Bitcoin’s next move will depend on ETF demand, US inflation and employment data, bond yields and the strength of the US dollar.
Bullish
The immediate market impact is bullish. Bitcoin reclaimed the psychologically important $80,000 level alongside $730.8 million in daily spot Bitcoin ETF inflows, while Ethereum ETFs also returned to positive flows. Lower expectations for a near-term Federal Reserve rate hike supported Treasury yields and broader risk assets, creating a favourable backdrop for cryptocurrencies.
Short liquidations were another important catalyst. The forced covering of approximately $205 million in Bitcoin shorts likely accelerated the move above $78,000 and $80,000. Similar episodes in crypto markets have often produced rapid breakouts, but they can also lead to sharp pullbacks once leveraged positions are cleared. The concentration of flows in IBIT also means that continued institutional demand should be monitored rather than assumed.
In the short term, a sustained break above roughly $82,793 would strengthen the bullish technical outlook and could bring $90,000 into focus. Failure to clear that level, weaker ETF inflows or renewed strength in Treasury yields and the US dollar could trigger profit-taking. Key downside areas are around $75,674 and $71,781.
Over the longer term, persistent ETF inflows could support institutional accumulation and improve market liquidity. However, the rally remains sensitive to US inflation and employment data, monetary-policy expectations and leverage. The current move is therefore bullish, but part of it reflects short covering and may not represent entirely new long-term capital.