Bitcoin Nears Best Week in Years as Treasury Liquidity Move Drives Rally

Bitcoin has climbed nearly 20% over the past 48 hours, pushing above $79,400 and marking its highest level since late May. The move puts btc on track for one of its strongest weekly performances in years, driven largely by the US Treasury’s decision to expand bond buybacks.

Liquidity Expansion Behind the Surge

Bitcoin has historically responded well to liquidity expansion, noting that earlier weakness this year stemmed from tighter financial conditions following the Iran conflict, inflation pressures, and capital flowing heavily into AI and semiconductor stocks instead.

The Treasury surprised markets by doubling its long-term bond buyback size from $2 billion to $4 billion per session, targeting the 10-year, 20-year, and 30-year sectors after yields hit 20-year highs.

Political Momentum Adds to Optimism

Treasury Secretary Scott Bessent said he retains a “big toolkit” to manage rising yields, a comment that reinforced expectations of further liquidity support. Sentiment also improved following a White House meeting between President Trump and executives from Coinbase and Robinhood, where Trump urged Congress to advance the Clarity Act. Chhugani noted the industry expects either the bill’s passage in September or expanded SEC and CFTC rulemaking soon after.