Bitcoin opened at a three-month high above $78,900 and briefly topped $81,000 this week because the U.S. Treasury doubled the size of its long-bond buyback operations, easing yields and weakening the dollar enough to send investors into scarce assets like gold and bitcoin. A parallel push for the Clarity Act and heavy BlackRock ETF buying added extra fuel.
Read the full story: Bitcoin's 3-Month High Is a Treasury Bond Story, Not a Crypto One →
Transcript
Bitcoin opened at seventy eight thousand nine hundred eighty two dollars this week, its highest open in over three months, and briefly spiked past eighty one thousand. Here's the twist: this isn't really a crypto story. Six days earlier, the US Treasury doubled the size of its long bond buyback operations, from two billion to at least four billion dollars per operation. Pulling old illiquid bonds off the market eases yields and weakens the dollar, and that sends investors looking for scarce assets, gold and bitcoin both caught the same bid this week. Add in a White House push for the Clarity Act and BlackRock capturing over sixty percent of bitcoin ETF inflows in a single day, and you've got a rally built more on bond market plumbing than on any crypto-specific news. Which means it's exposed to the same plumbing if it reverses.