BTC jumps 28% in eight days, adding $350 billion in market cap as Treasury bond buybacks fuel liquidity expectations.
Bitcoin (BTC-USD) climbed above $80,000 early Tuesday, its first time at that level in 15 weeks. The 28% gain over eight days added roughly $350 billion to its market capitalization, fully recovering losses accumulated over the prior three months.
The rally follows the U.S. Treasury’s decision to double its long-term bond buyback operations to $4 billion per session, up from $2 billion. The move targets 10-year, 20-year, and 30-year Treasuries after yields hit 20-year highs amid persistent inflation and energy price pressures. Crypto-linked stocks also surged, with MicroStrategy (MSTR) up 36% in a month and Coinbase (COIN) rising 16%.
Investors appear to interpret the Treasury’s liquidity injections as a tailwind for risk assets, including digital currencies. The policy shift aims to stabilize bond prices and reduce borrowing costs, but its impact on crypto markets has been immediate and pronounced.