Bitcoin Surges 23% as US Treasury Buybacks Spark Debasement Trade

Bitcoin rallied roughly 23% this week to trade around $77,000 on Monday, posting its strongest weekly performance in over two years as global markets reacted to major U.S. Treasury interventions.

The digital asset briefly touched $79,500 after the U.S. Treasury doubled planned buybacks of long-dated government bonds to at least $4 billion per operation, sparking renewed interest in scarce assets to hedge against currency debasement.

The policy announcement initially sent 30-year Treasury yields down 9 basis points on Wednesday, coinciding with a 7% single-day jump in Bitcoin and a 4% rise in gold. Although long-term yields recovered most of their losses by Friday, crypto and precious metals maintained their upward momentum.

Exchange-traded fund demand accelerated the move, with U.S. spot Bitcoin ETFs recording over $1.6 billion in net inflows between Monday and Thursday, led by $606 million on Thursday alone.

The sharp upward spike forced derivative exchanges to liquidate more than $4.3 billion in short positions, creating buying pressure that pushed prices toward long-standing resistance levels.

Institutional interest was further bolstered by signals from Washington after President Trump urged Congress to pass the Clarity Act, legislation aimed at dividing digital asset oversight between the SEC and CFTC.

Market participants highlighted a shift in how the cryptocurrency traded relative to traditional equities during the volatility.

Coinage founder Zack Guzman said Friday on Yahoo Finance's Morning Brief that Bitcoin has established itself as a bit of a debasement trade.

When you're talking about the government getting involved here to kind of control things, eventually that money flows to assets like Bitcoin, Guzman said.

Historical market data shows that Bitcoin gained over 15% alongside falling stocks, rising gold, and a weaker dollar in six previous instances since 2015, but each of those periods occurred during falling long-term interest rates.

Crypto assets now face technical resistance between $79,500 and $80,000, while analysts identify initial downside support around $75,000 to $76,000.