Bitcoin breaks $80,000: Has the crypto rally found its legs again?

Bitcoin has reclaimed the $80,000 mark, while several major cryptocurrencies have posted strong weekly gains. The move has revived hopes of a broader crypto rally, but can it last?Bitcoin is back above the $80,000 mark, and this time the move is not happening in isolation. Ethereum and several other major cryptocurrencies have also jumped sharply over the past week, bringing traders back into the market and raising a bigger question: Is crypto entering another strong rally, or is this just a short-term bounce?At around 11.30 am, Bitcoin, the world's largest cryptocurrency, was trading at $80,732.71, up 4.6% over the previous 24 hours. It has gained around 25.77% over the past week.Bitcoin's move above $80,000 is particularly significant as it crossed the level for the first time since May.ETHEREUM, XRP AND SOLANA JOIN THE RALLYThe recovery is not limited to Bitcoin. Ethereum, the second-largest cryptocurrency, was trading at around $2,507.92, up 2.39% over the previous 24 hours. It has gained 32.44% in the past week.Several other major tokens have also seen strong gains. XRP has climbed 52.87% over the past seven days, while Solana has risen 34.70%. Cardano has gained 31.37% during the same period. Even popular meme coins have joined the party. Dogecoin has risen 32.99% over the past week, while Shiba Inu has gained 29.68%.The broad-based nature of the gains suggests that investors are not just returning to Bitcoin. Risk appetite appears to be spreading across the wider crypto market.'MARKET IS MOVING BEYOND SCEPTICISM'Rajagopal Menon, Vice President at WazirX, said the current phase of the crypto market brings to mind an old observation by legendary investor Sir John Templeton: “Bull markets are born on pessimism, grow on scepticism, mature on optimism and die on euphoria.”Menon said the comment is particularly relevant to the current market.“Bitcoin’s move back above $80,000, alongside improving sentiment and renewed participation across altcoins, suggests that the market is gradually moving beyond the scepticism that has defined much of the recent period,” he said.According to Menon, the wider economic environment is also becoming an important part of the crypto story.A softer US dollar and concerns around the country's fiscal position could strengthen the case for Bitcoin among investors looking for scarce and globally accessible assets.“If long-term yields remain stable or move lower while investment in technology and innovation continues, that could provide further support for risk appetite and digital assets,” Menon said.However, he cautioned that risks remain.“Developments around Iran could put pressure on risk assets if they lead to higher energy prices or tighter financial conditions,” he said.For Menon, the bigger positive sign is that participation in the market appears to be broadening again.“We now have to observe if this improving sentiment can develop into sustained conviction,” he said.BITCOIN'S SHARP WEEKLY REBOUND CATCHES ATTENTIONRyan Lee, Chief Analyst at Bitget Research, pointed to the speed of Bitcoin's recovery as an important factor.Bitcoin's roughly 23% weekly rebound comes after months of subdued trading activity, making the pace of the move particularly significant, Lee said.He also pointed to renewed demand from US spot Bitcoin exchange-traded funds (ETFs).“U.S. spot Bitcoin ETFs recorded $517 million in net inflows on August 19, their strongest day since early May,” Lee said.According to Lee, the combination of fresh spot demand and forced short covering has helped push Bitcoin towards the $78,500-$80,000 resistance zone.CAN BITCOIN STAY ABOVE $80,000?This is now the key question for crypto investors.A move above $80,000 is encouraging, but what happens next could be more important than the breakout itself.Lee said the market now needs to see whether genuine spot demand can take over from the short squeeze.Bitcoin had spent much of the summer below $64,000, while perpetual trading activity fell to a three-year low earlier in August, he said.“A sustained break above $80,000, backed by continued ETF inflows, would signal a meaningful shift in positioning and open the $82,000-$87,000 range,” Lee said.However, he does not expect the rally to move in a straight line.“We expect BTC to trade broadly between $74,000 and $81,000 in the near term,” Lee said.After such a rapid rise, a pullback towards $75,000-$76,000 could simply reflect profit-taking rather than an immediate reversal of the trend.RALLY OR SHORT-TERM BOUNCE?For now, the crypto market appears to have regained some of its momentum. Bitcoin is back above $80,000, altcoins are posting sizeable weekly gains and ETF inflows suggest that institutional interest has returned.But the rally still needs to prove that it has staying power.As Lee pointed out, the next phase will depend heavily on whether institutional buying continues after forced liquidations have cleared.In other words, crossing $80,000 is only the first test. Staying above it could be the real challenge.- EndsPublished By: Jasmine anandPublished On: Aug 25, 2026 12:10 IST