Treasury’s $1 trillion account and $2 billion bond buyback strategy fuel bitcoin’s rally above $79,000 amid short-covering surge.
Bitcoin climbed to a two-month peak, trading above $79,000, after the Treasury Department signaled plans to expand bond buybacks using its $1 trillion general account. The move, which includes at least doubling purchases of long-term government bonds, triggered a wave of short-covering and boosted crypto market sentiment.
The rally follows last week’s announcement, with ETF inflows and reduced short positions amplifying gains. Bitcoin’s price has risen over 10% in the past week, outpacing traditional asset classes as traders bet on continued liquidity support.
Crypto-related stocks surged in tandem, while regulators like the CFTC explore new rules for digital assets, adding to market optimism.