Bitcoin Price Surges 25% Amid Debasement Trade Revival
Bitcoin's price has surged nearly 25% over a seven-day period, reaching as high as $81,160 on Monday and trading at $78,302. The cryptocurrency has benefited from news that the Treasury would at least double the size of its liquidity-support buyback operations, which hurt the dollar but boosted non-yielding assets like Bitcoin and gold.
The debasement trade is back in focus, with investors buying assets to hedge against a currency losing value. Gold and Bitcoin ETFs have combined for over $7 billion in flows in the past week, a record for a five-day period, according to Bloomberg Intelligence ETF Analyst Eric Balchunas.
Bitcoin exchange-traded funds (ETFs) have attracted billions of dollars in new investment, with U.S. investors throwing in $2.56 billion since last Monday. This influx of cash has pushed the price higher and helped push the coin's price above $78,000 for the first time.