Bitcoin Surges 23% Amid Treasury Yield Drop and Short Squeeze
Bitcoin has rallied around 23% this week, putting it on track for its strongest weekly gain in more than three years. This surge is largely driven by lower Treasury yields, renewed institutional demand, and a wave of short covering.
The move pushed Bitcoin's price to around $77,000, compared to roughly $62,800 at the start of the week. Crypto-linked stocks also surged, with Coinbase and Circle gaining more than 9% each at one point, while Strategy advanced 7%.
According to Sygnum APAC head of partnerships Max Stuedlein, Bitcoin's move reflected an alignment of macroeconomic and policy catalysts. He noted that the Treasury's decision to increase buybacks of long-dated government debt was aimed at addressing concerns around long-term borrowing costs, rising US debt levels, and the potential crowding-out effect of debt issuance by hyperscalers.
Analysts such as Rachael Lucas from BTC Markets attribute the key driver behind Bitcoin's rally to the Treasury's decision to double its long-dated bond buybacks. This move pulled long-term yields lower and lifted risk appetite more broadly.