Bitcoin Surges to $79,000 as US Treasury Boosts Bond Buybacks
Bitcoin's price has surged to near $79,000 after its best week in over three years, with a 24% gain from last week's price of around $64,146. This marks the largest weekly increase since October 2023, when Bitcoin reached an all-time high above $126,000.
The strong demand for US spot Bitcoin ETFs has also contributed to this rally, with inflows totaling around $1.92 billion over five sessions through August 21, the strongest weekly inflow of 2026 and the best stretch since October 2023. This is a significant turnaround from last week's outflows of nearly $390 million.
The surge in demand is attributed to the US Treasury's decision to double long-dated bond buybacks from $2 billion to $4 billion per operation starting September 9, easing yields and shoving capital back into risk assets. This has led to a squeeze on short positions, with over $4.3 billion being liquidated during the rally.
However, there are cautionary notes from some market analysts, who warn that the market may be overstretched. Jayke Kyndrede, senior sales trader at QCP Group, noted that 'near term, the market looks stretched but still well supported.'