NEW YORK: Bitcoin climbed back above $80,000 on Friday as cryptocurrency investors saw a sharp recovery after several difficult trading sessions.
The world’s largest cryptocurrency rose more than 5 per cent at one point, reaching around $81,000 and recording its third consecutive day of gains.
The recovery marked a significant turnaround from earlier in the week.
Bitcoin had faced pressure following two developments that initially appeared negative for the cryptocurrency market.
The US Federal Reserve raised interest rates for the first time in three years, while a major cryptocurrency bill failed to advance in the US Senate.
However, Bitcoin recovered instead of extending its losses.
Investors reassess market risks
Investors appear to have already priced in much of the negative news, helping Bitcoin regain momentum.
Falling oil prices have also eased some concerns about inflation. Meanwhile, fresh developments from US regulators provided additional support for cryptocurrency markets.
The Securities and Exchange Commission introduced an exemption allowing companies to offer trading in tokenised versions of stocks and other securities.
Money has also begun returning to Bitcoin investment funds.
US spot Bitcoin exchange-traded funds attracted around $160 million on Thursday after recording two consecutive days of outflows, according to JPMorgan data cited by the Wall Street Journal.
Short positions add to rally
The rise also triggered significant liquidations among traders betting that Bitcoin’s price would fall.
As Bitcoin moved sharply higher, millions of dollars worth of bearish positions were liquidated.
Those liquidations forced some traders to buy Bitcoin to close their positions, adding further momentum to the rally.
Despite the recovery, Bitcoin remains well below its previous record.
The cryptocurrency reached more than $126,000 in October 2025 before falling to around $60,000.
The latest move above $80,000 therefore marks an important recovery level, although maintaining the gains could prove more difficult than reaching it.
