Bitcoin wipes out three months of losses in one week as price tops $80,000
By Aboki Forex —
Bitcoin broke through $80,000 early Tuesday for the first time in 15 weeks. The cryptocurrency is up 28% in eight days, adding about $350 billion to its total market cap.
That rally has wiped out three months of losses in roughly one week, with Yahoo AlphaSpace showing bitcoin at $79,302.97.
Big gains for crypto-linked stocks
Shares tied to digital assets have rallied sharply. Michael Saylor's Strategy (MSTR) is up 36% in the past month. Circle (CRCL) has gained 43%. Coinbase (COIN) is up 16%. Robinhood (HOOD) has added 12%.
What triggered the bitcoin surge
The US Treasury surprised financial markets last week by announcing it will double the maximum size of its long-term bond buyback operations from $2 billion to $4 billion per session. This intervention directly targets the 10-year, 20-year, and 30-year Treasury sectors after benchmark yields spiked to 20-year highs due to nagging inflation and war-driven energy price pressures.
Treasury Secretary Scott Bessent said he has a "big toolkit" to continue addressing the rise in bond yields. By stepping into the secondary market to purchase debt, the Treasury aims to inject liquidity, stabilise falling bond prices, and pull down soaring borrowing costs for consumers and businesses.
Bulls expect more liquidity
Bessent's promise appears to have emboldened bitcoin bulls into expecting more liquidity, which they have tended to reward with higher digital asset prices.
Bianco Research president Jim Bianco said: "Why it's happening is because we're not dealing with inflation and we're talking about being stimulative and those are the assets that would benefit from it."
Sentiment also got a boost from a White House meeting last week between President Trump and top digital asset players at Coinbase and Robinhood. Trump called on Congress to pass a "fair version" of the Clarity Act and declared that America will remain the "undisputed leader" in bitcoin and crypto.