BTC Surges 20% Amid Treasury Buyback Plans and Trump's Crypto Push

Bitcoin and gold prices surged this week due to a combination of factors, including the US Treasury's plan to increase its buybacks of long-term Treasurys and President Donald Trump's push for crypto-friendly legislation.

The Treasury Department announced on Wednesday that it would at least double the size of its planned purchases of longer-term government debt in an effort to calm bond markets. However, this move raised concerns about whether the government is trying to lower borrowing costs despite inflationary pressures.

The national debt surpassed $40 trillion on the same day as the Treasury's announcement, adding to existing anxiety over inflation. As a result, investors flooded into alternative assets such as gold and bitcoin, causing their prices to rise.

BTC jumped more than 20% this week, with its price blasting through the upper level of $67,000 after the Treasury's announcement. This surge was partly due to the forced purchases of BTC by investors who had shorted it, adding fuel to the rally and potentially triggering still more liquidations.