Bitcoin (BTC) surged past $80,000 for the first time since mid-May, marking a significant rally that saw it gain over 20% in the last week. This increase was propelled by a macro shift following the U.S. Treasury's announcement to double its purchases of longer-dated government bonds, which briefly lowered yields and revived demand for risk assets like Bitcoin and scarce assets like gold. The cryptocurrency's strong performance led to over $220 million in crypto short liquidations within 24 hours, and spot Bitcoin ETFs recorded their largest weekly inflow since October, totaling $1.92 billion.
The rally in Bitcoin and other cryptocurrencies extended to crypto-related stocks, with Strive climbing 8%, Strategy adding 2%, and ETH treasury names Bitmine and Sharplink gaining 5% and 4% respectively. This robust performance raised questions among investors about whether this marks a turning point for Bitcoin, which had been in a prolonged slump since October. Analysts like Rekt Capital highlighted the importance of Bitcoin sustaining higher levels, noting its first weekly close above the 50-week exponential moving average ($77,251) since November 2025.
Global stocks also experienced a bounce, with the S&P 500 gaining 0.4% to close at 7,674, the Dow Jones Industrial Average rising 0.98% to 53,277.01, and the Nasdaq Composite advancing 0.43% to 26,180.45 on Friday. European markets also saw gains, with the FTSE 100 up 0.6% to 10,816.56 and the CAC 40 up 0.4% to 8,484.43. This rebound came despite continued concerns about inflationary risks, a rising national debt, and competition from debt issued by tech giants. The U.S. Treasury's move to increase bond buybacks, termed a "Bessent put," signaled a willingness to counter rising long-end yields, even though some analysts viewed the buybacks as too small to significantly impact long-dated Treasuries.
