Bitcoin Breaks Above $80,000 as Crypto Legislation Sentiment Boosts Inflows

Crypto investment products continued their impressive streak of inflows, marking six consecutive weeks of gains totaling $4.9 billion. This surge was largely driven by improving sentiment around US crypto legislation, which saw a significant boost after the release of a final compromise proposal for stablecoin yields on May 1.

According to CoinShares, Bitcoin investment products led the charge with $706 million in inflows, pushing year-to-date flows to $4.9 billion. In contrast, short-Bitcoin ETPs experienced their largest weekly outflow of the year at $14 million, suggesting investors are increasingly confident in the rally and less likely to bet against BTC.

While Bitcoin briefly dipped below $80,000 on Thursday, its price eventually recovered, with the cryptocurrency climbing back above this milestone. The late-week profit-taking saw US-listed spot Bitcoin exchange-traded funds experience $423 million in outflows, reducing net weekly inflows to about $623 million.