Bitcoin Surges Past $70k as US Stocks Rise on Looser Conditions
US stocks rose on Friday, led by crypto stocks as Bitcoin surged to $77,000. The Dow Jones gained 1%, while the S&P 500 and Nasdaq both rose 0.4% after hitting a three-week low the previous session.
The boost came as Treasury announced it would increase its long-term bond buybacks to $4 billion per session, which is seen as a signal of looser financial conditions that favors digital assets. Bitcoin's price jumped 6% in response, its first move above $70,000 since late May and its best weekly performance (+22%) in years.
Nigel Green, head of deVere Group, said 'Bitcoin just proved again that it trades on liquidity before almost anything else.' The meeting at the White House to discuss a regulatory framework for cryptocurrencies also lifted sentiment.
US business activity strengthened in August, with S&P Global's flash PMIs pointing to the fastest pace of private-sector growth in over four years. However, US long-term bond yields continued to edge higher despite the Treasury's plans.