Bitcoin Surges 22% Amid Treasury Intervention Fears
Bitcoin (BTC) surged by 22% on the week to reach $76,944, its strongest weekly performance since March 2024. This marked a significant rally for crypto-linked equities as well, with Strategy up 29%, Coinbase 25%, and Robinhood 13%. The Treasury Secretary's announcement of doubling bond buybacks triggered the rally, sparking fears of 'fiscal dominance' among institutional voices.
Institutional research notes highlighted the Treasury intervention as a form of quantitative easing, weakening the USD and sending scarce assets like Bitcoin higher. Spot BTC ETFs recorded their largest daily inflow since May, with BlackRock taking 83% of the $606 mn that entered.
However, not all experts agree on the significance of this rally. Bespoke's David McCarthy stated that gold carried the real macro signal, rallying cleanly on the Treasury doubling its bond-buying operations without any forced buying inflating Bitcoin's price. Token Bay Capital's Lucy Gazmararian suggested that the crypto bear market may need 'one final flush' before a sustained recovery.