On Friday afternoon, Bitcoin experienced a decline, moderating after a remarkable surge driven by substantial investments from U.S. exchange-traded fund (ETF) buyers.
At that time, the leading cryptocurrency was trading at $77,379, reflecting a more than 3% decrease over the preceding 24 hours.
Earlier in the week, Bitcoin reached a peak of $81,281, but its upward momentum slowed following a significant address by Federal Reserve Chair Kevin Warsh. In his inaugural speech as head of the central bank, Warsh indicated that he had “more work to do” in combating inflation.
Historically, Bitcoin’s price has tended to decline in response to indications that the Federal Reserve views inflation as excessive, as such sentiments decrease the likelihood of interest rate cuts. The cryptocurrency has generally performed better in a low-interest rate environment.
JUST IN: U.S. Bitcoin ETFs have brought in $1.14 billion in inflows this week.
Over $3 billion has been added in the past 9 days!
pic.twitter.com/ri1jE7enTZ
— Bitcoin Magazine (@BitcoinMagazine) August 28, 2026
The surge in Bitcoin’s value began the previous week following the U.S. Treasury’s announcement to significantly expand its liquidity support buyback operations. This decision adversely affected the dollar while benefiting non-yielding assets.
Data from Farside Investors indicates that exchange-traded funds managed by firms such as BlackRock, Fidelity, and Grayscale have experienced net positive inflows for nine consecutive days. The previous week marked their most successful performance since October, when Bitcoin achieved a new all-time high, and this trend has continued into the current week.
Since August 17, investments into these funds have surpassed $3 billion. BlackRock’s iShares Bitcoin Trust has attracted the majority of this capital, while Morgan Stanley’s newly launched Bitcoin Trust, initiated this year, has also witnessed notable inflows.
Analysts have indicated that the so-called “debasement trade,” wherein investors purchase assets as a hedge against currency devaluation, has led many to reassess Bitcoin’s value proposition. Participants in this trade perceive Bitcoin, along with gold and other precious metals, as effective safeguards against excessive government spending.
Notably, total U.S. debt exceeded $40 trillion for the first time earlier this month.
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