Bitcoin climbed back above the $80,000 mark on Tuesday for the first time since mid-May, as a string of positive catalysts revived optimism across the cryptocurrency market after months of selling pressure.
The world's largest cryptocurrency by market value rose as much as 2.5% during Asian trading, touching $80,908, a level it had not reached since May 15.
Strongest weekly gain in three years
Tuesday's advance capped an impressive seven-day run in which bitcoin gained 23%, its strongest weekly performance in roughly three years.
The rebound was accompanied by $1.92 billion in inflows into bitcoin exchange-traded funds and $7.2 billion in liquidations of bearish positions.
What is driving the rally
Bitcoin exchange-traded funds, or ETFs, let investors gain exposure to the cryptocurrency's price through regulated stock-market products rather than buying and holding the coin itself. Heavy inflows into these funds are generally read as a sign of renewed demand from institutional investors.
Liquidations of bearish, or short, positions happen when traders who had bet on falling prices are forced to close those trades as the market moves against them. That process itself creates additional buying pressure, which can accelerate a rally such as the one bitcoin has seen over the past week.
Still well below last year's record
Despite the rebound, bitcoin remains well below its all-time high of about $126,000, which it reached last October.
Bitcoin is a decentralized digital currency that trades continuously on exchanges around the world and has become the benchmark asset for the wider cryptocurrency market since its launch in 2009.
