Crypto Market Surges on Bond Relief and Regulatory Tailwinds

After weeks of stagnation and weakness, the cryptocurrency market staged a sharp rally driven by US Treasury bond relief, regulatory tailwinds, and massive short-position liquidations.

The standout performer was Ethereum, which surged by approximately 17.5% to around $2,244 after climbing to a daily peak of about $2,328.

The broader market joined the rally as well: Solana rose about 11% to around $85, and XRP climbed more than 10% to around $1.10.

The primary catalyst originated from the US Department of the Treasury's announcement that it will at least double the scope of its buybacks of long-term government bonds starting in September.

This move drove yields down, weakened the US dollar, and boosted risk appetite across markets.