Bitcoin tops $71,000 as $1.25B ETF flow reversal tests breakout

Bitcoin climbed 3.4% to $71,700 on Aug. 20, its strongest level since early June, after U.S. spot-ETF flows swung $1.252 billion to inflows.

"Bitcoin still has a little bit to prove here," Benjamin Cowen, a crypto analyst, said in a podcast update, noting the token has rallied back into what he calls the "bear market resistance band" that has repeatedly capped recovery attempts this year.

The advance extended a two-day gain of more than 10 percent. U.S. spot Bitcoin ETFs recorded net inflows of $1.004 billion between Aug. 17 and 19, reversing $248.4 million of outflows from Aug. 12 to 14, according to Farside Investors. BlackRock's iShares Bitcoin Trust drew $284.7 million, or 55 percent, of Wednesday's $517.2 million total, with nine of 12 tracked funds posting positive flows and none reporting an outflow.

The rally drew support from two Washington developments. The U.S. Treasury said it would at least double liquidity-support buybacks for longer-dated bonds to $4 billion per operation, pulling the 30-year yield down from 5.337 percent to about 5.187 percent. President Donald Trump separately called on Congress to pass a "fair version" of the CLARITY Act after hosting crypto executives at the White House on Aug. 19.

ETF Breadth Widens Beyond BlackRock

The flow turnaround marked the strongest signal yet that policy sentiment can revive institutional demand. Earlier in August, inflows were frequently driven mainly by IBIT; on Wednesday, Ark Invest's ARKB added $77.7 million, Fidelity's FBTC $62.4 million, and Bitwise's BITB $35.6 million, with contributions also coming from longstanding Grayscale products.

Ethereum joined the move, climbing above $2,270 as the rally spread beyond Bitcoin. Analyst CryptosRus said ETH is showing stronger momentum than BTC over the past 24 hours and 30 days, with its chart holding above key trend levels and pushing toward resistance between $2,334 and $2,391.

Analyst Targets Range From $82,000 to $150,000

Institutional price forecasts diverge sharply. Citigroup sees $82,000 within 12 months, Standard Chartered's Geoffrey Kendrick maintained a $100,000 call for end-2026, and Bernstein targets $150,000 by year-end, contingent on continued institutional participation. Bespoke Investment Group expressed caution on IBIT, saying April-May peaks must be retaken.

Cowen, however, pointed to 2018 and 2022 bear markets, when Bitcoin produced sharp relief rallies before falling to new cycle lows. He noted Bitcoin has not fallen below its realized price or seen its MVRV-Z Score drop below zero during this cycle — conditions present at prior major bottoms.

The breakout requires confirmation. Consistent, widespread ETF inflows would reinforce the rally as genuine demand; a swift drop under $70,000 would indicate another short squeeze. Support sits near $68,000 to $69,000, with resistance at $72,000 and the psychological $75,000 mark. The Treasury's $4 billion buybacks remain small relative to the roughly $32 trillion Treasury market, and Fed officials have discussed further rate increases if inflation stays stubborn.

This article is for informational purposes only and does not constitute investment advice.