Bitcoin Surges Over 8% as Treasury Doubles Bond Buybacks

Bitcoin's price has surged more than 8% on Friday, putting it on track for its biggest weekly gain in three years. According to Bloomberg, this significant increase is largely due to the U.S. Treasury doubling its long-term bond buybacks, which lowered long-term bond yields and boosted risk appetite.

Rachel Lucas, an analyst at BTC Markets, pointed out that 'nothing has changed Bitcoin's long-term outlook, but nothing has changed its volatility either.' She attributed the price gain to short positions on Bitcoin being liquidated in the perpetual futures market, with over $2 billion in bearish bets liquidated since August 19.

The U.S. Treasury Secretary Scott Bessent's announcement and President Donald Trump's meeting with cryptocurrency industry leaders have also contributed to the optimism surrounding cryptocurrencies. However, Adam Morgan McCarthy, lead researcher at LO:TECH, noted that gold rose cleanly after the Treasury doubled its bond-buying operations without any forced buying to inflate Bitcoin's price.

Large token holders, known as Bitcoin Whales, recently added approximately $2.75 billion worth of the token over 60 days, according to CryptoQuant. Institutional buyers have also returned to the market this week, with U.S.-listed spot Bitcoin exchange-traded funds on track for their largest weekly inflow since January.