Bitcoin Surges Amid Treasury-Fed Standoff Ahead of Warsh Keynote

The Bitcoin price has seen its best weekly gain since March 2023, rising from $63,500 to around $81,250 over the past week.

This move came as the U.S. Treasury and Federal Reserve faced a standoff over long-term borrowing costs.

James Butterfill, head of research at CoinShares, called it 'a macro story, not a crypto one', pointing to softer inflation and weaker payrolls that reduce the probability of further rate hikes.

The tension between the Treasury and Fed began on August 19 when the Treasury said it would double the maximum size of its buyback operations for longer-term government bonds from $2 billion to at least $4 billion per operation.

However, this move was met with skepticism as the 30-year Treasury yield initially fell but then climbed back to 5.247% within 24 hours, its highest level since 2007.