Crypto Market Surges on Treasury Buybacks and Regulatory Boost

Bitcoin and Ethereum have broken sharply higher in recent trading, driven by fresh liquidity, institutional inflows, and forced short covering. Bitcoin touched $70,000, up over 7% from the previous day, while Ethereum surged almost 18%. The move marks a significant shift from last week's trading, when spot volume fell to its lowest level since 2019.

The Treasury Department's announcement of doubling long-term Treasury buybacks has provided a major catalyst for the rally. The move saw long-term yields fall and the dollar weaken. In response, more than $1.2 billion in bearish crypto positions were liquidated as Bitcoin accelerated through resistance.

Regulatory developments have also contributed to the buying sentiment. The SEC has proposed dedicated crypto fundraising rules with exemptions reaching $75 million annually, while President Donald Trump has pressed Congress for broader market-structure legislation. Ethereum's outperformance suggests that the rally has moved beyond a Bitcoin-only squeeze.