Why Did Bitcoin Explode Past $81K? 4 Macro Factors Behind the Rally

Bitcoin surged past $81K driven by four macro factors: heavy spot-ETF inflows and institutional demand, easing US monetary expectations and lower real yields, a weakening US dollar, and constrained supply/liquidity on exchanges. ETF-driven buying concentrated demand and reduced available supply, amplifying price moves and provoking short-covering. Softer yields and dollar weakness made risk assets and dollar-denominated stores of value more attractive, drawing capital into Bitcoin. Implication: the rally highlights Bitcoin’s growing sensitivity to macro liquidity and institutional flows—supporting further upside but leaving it vulnerable to reversals if rate sentiment, ETF flows, or the dollar shift.