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Cryptocurrency illustration. / Yonhap

Bitcoin has climbed back above the $80,000 mark as inflows returned to U.S. spot Bitcoin exchange-traded funds and short-position liquidations helped spread buying momentum across the broader cryptocurrency market.

As of 5 p.m. on Sept. 19, Bitcoin was trading at $81,091 on U.S. cryptocurrency exchange Coinbase, up 4.28% from the previous day. It was the first time Bitcoin had topped $80,000 since Sept. 7.

Ethereum rose 5.45% to $2,626, XRP gained 6.38% to $1.41 and Solana climbed 5.49% to $111.

A recovery in institutional demand has contributed to the recent gains. U.S. spot Bitcoin ETFs recorded about $159 million in net inflows on Sept. 17, reversing two consecutive days of net outflows. As prices rebounded, leveraged positions betting on further declines were also liquidated in succession, adding momentum to the rally.

Faster-than-expected progress in the U.S. regulatory environment for cryptocurrencies has also supported investor sentiment. The U.S. Securities and Exchange Commission introduced regulatory easing measures related to trading in tokenized stocks, while the Commodity Futures Trading Commission has begun working on a regulatory framework for the cryptocurrency market.

Market participants are focusing on the broader trend toward integrating cryptocurrencies into the U.S. financial and regulatory system, even after a Senate procedural vote on the CLARITY Act failed.

However, the Federal Reserve raised its benchmark interest rate by 0.25 percentage point on Sept. 16 and left the door open to further tightening. The future path of interest rates and ETF fund flows are therefore expected to be key factors determining whether the rally can continue.

                                                                                                             Kim Min-ju