Bitcoin Soars on U.S. Treasury's Quantitative Easing Announcement

Bitcoin surged nearly 6% on Wednesday after the U.S. Treasury announced it would double its buyback of old long-term government bonds, a move that analysts see as a form of quantitative easing.

This policy shift is expected to weaken the dollar and increase demand for assets seen as inflation hedges, particularly Bitcoin.

As traders who had bet on a decline closed out their short positions by buying Bitcoin, the volume of these trades totaled approximately $1.5 billion, with around $700 million of that occurring in just one minute.

This could be the largest short squeeze in Bitcoin's history, according to 21Shares.