Woofun AI reports that Bitcoin (BTC) has surged to its highest level since May, propelled by the U.S. Treasury's bond-buyback plan which has reignited risk appetite across markets. This macro-driven rally positions the asset for a pivotal test of the $80,000 barrier before weekend trading commences.

Price action intensified as BTC climbed to $79,400 before settling near $78,000, with exchange-traded funds (ETFs) providing crucial support ahead of their closure. Spot U.S. bitcoin ETFs recorded net inflows of $606 million on Thursday, marking the strongest daily performance since May 1. This institutional capital injection underscores the market's current reliance on traditional finance channels rather than organic crypto-native demand.

The broader macroeconomic landscape remains volatile, with recent lower-than-expected CPI and payrolls data influencing Federal Reserve policy expectations. Investors are now closely monitoring the upcoming Jackson Hole symposium for signals on whether the central bank will pivot away from tightening.

Meanwhile, U.S. flash PMI readings released today could further sway yields and the dollar, directly impacting inflation perceptions and the attractiveness of risk assets.

Woofun AI data shows that despite the rally, accumulation by large holders remains modest, suggesting a lack of deep conviction necessary for a durable breakout. CoinShares' head of research, James Butterfill, noted that sticky inflation or a weakening dollar could force the Federal Reserve to "compensate at the front end." As markets close, Bitcoin will face thinner weekend liquidity, increasing vulnerability to geopolitical developments affecting oil prices.

Technical indicators highlight a shift in relative strength, with the bitcoin-ether exchange rate showing ETH outperforming BTC. The ETHBTC ratio is currently testing core resistance at 0.03 while holding above its 50-week exponential moving average. With no bearish divergence on the relative strength index (RSI), a clean break above this level likely signals sustained outperformance for ETH over its larger rival.