Bitcoin and Gold Prices Soar on Bond Market Boost

Bitcoin's price surged by nearly 22% over the past week, reclaiming key levels after a significant boost from the bond market and developments in Washington. Gold also benefited from similar conditions, rising above $4,600 on Friday as investor interest returned.

The US Treasury's announcement that it would double its bond-buy operations from $2 billion to $4 billion lowered 30-year bond yields, which hit 5.34% prior to the decision. This move provided a major tailwind for Bitcoin and gold prices.

Spot Bitcoin ETFs saw renewed momentum, recording their strongest week in 10 months with net inflows of $1.92 billion, according to CoinGlass data. The US Treasury's announcement also buoyed investor sentiment, with President Trump's meeting with top crypto industry executives and subsequent calls on Congress to pass the CLARITY Act increasing optimism about greater regulatory clarity.

Bitcoin's price rallied after trading in the $62,000 and $67,000 range for nearly two months. Short traders seized the moment, placing bets against a rally, but the US Treasury's announcement fueled BTC's surge past the $70,000 mark, triggering a wave of liquidations as traders closed their short positions.