Bitcoin Soars 23% in Biggest Weekly Rally Since March 2023
Bitcoin's price surged to nearly US$80,000 amid its biggest weekly rally in over three years. The cryptocurrency jumped as much as 9.4% and was trading at around US$77,500 in late New York trading.
The gain comes after a recent spike in bond yields and a new initiative from the United States to double the size of its long-dated bond buybacks. This move triggered an upswing that forced traders to liquidate billions in short positions.
US Treasury secretary Scott Bessent's announcement last Wednesday added to optimism, as did President Donald Trump's meeting with crypto industry leaders on the same day. Meanwhile, gold reached its highest level since May amid investor fears that the intervention in the bond market will weigh on the dollar.
Bridgewater Associates founder Ray Dalio suggested diversifying portfolios across assets and countries with strong finances. He recommended underweighting bonds and holding around 10% to 15% of a portfolio in gold and 'a bit' of Bitcoin to reduce risk and boost returns.