Bitcoin Surges Past $78K on Growing Treasury Bond Buyback Plans

Bitcoin's price has broken through $78,000 as investors respond to growing attention surrounding U.S. Treasury plans to ramp up purchases of longer-dated government bonds.

The currency's value surged by over 6% on Friday and gained another 4% over the weekend, extending a recovery that started in mid-August.

This rally has been accompanied by increased trading volume, with daily volumes growing from approximately $18.65 billion before August 29th to around $33.96 billion yesterday.

The U.S. Treasury's proposed plan to boost purchases of mature and less liquid securities by between 50% and more than doubled is seen as a key factor driving the price increase.

Secretary Scott Bessent has discussed utilizing large Treasury cash reserves to bolster bond buyback operations, dubbed the 'Treasury Twist,' which involves selling shorter-dated bonds and buying longer-term securities to enhance liquidity in certain parts of the bond market.