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Bitcoin has just wiped out three months of losses in 1 week - YAHOO FINANCE
Bitcoin (BTC-USD) is having a summer end to remember.
The price of bitcoin broke through $80,000 early Tuesday for the first time in 15 weeks. In the last eight days, bitcoin is up 28% — adding about $350 billion in total market cap.
Bitcoin has now wiped out three months of losses in roughly a week.
In the process, Yahoo AlphaSpace data shows big-time gains for crypto-linked stocks. Michael Saylor's Strategy (MSTR) shares are up 36% in the past month, Circle (CRCL) has gained 43%, Coinbase (COIN) is up 16% and Robinhood (HOOD) has tacked on 12%.
The catalysts for bitcoin prices have been front and center the past two weeks.
The US Treasury surprised financial markets last week by announcing it will double the maximum size of its long-term bond buyback operations from $2 billion to $4 billion per session. This intervention directly targets the 10-year, 20-year, and 30-year Treasury sectors after benchmark yields spiked to 20-year highs due to nagging inflation and war-driven energy price pressures.
Treasury Secretary Scott Bessent said he has a "big toolkit" to continue addressing the rise in bond yields.
By stepping into the secondary market to purchase debt, the Treasury aims to inject liquidity, stabilize falling bond prices, and pull down soaring borrowing costs for consumers and businesses.
Bitcoin USD (BTC-USD)
Go deeper with AlphaSpace 79,302.97+222.22(+0.28%) As of 3:41:25 PM UTC. Market Open.
Bessent's promise to unleash his big toolkit appears to have only emboldened the bitcoin bulls into expecting more liquidity, which they have tended to reward with higher digital asset prices.
"Why it's happening [bitcoin's rise] is because we're not dealing with inflation and we're talking about being stimulative and those are the assets that would benefit from it," Bianco Research president Jim Bianco said on Yahoo Finance's Opening Bid (video above).
Further helping sentiment around bitcoin is a White House meeting last week with President Trump and top digital asset players at Coinbase and Robinhood. (Disclosure: Yahoo Finance has a partnership with Coinbase.)
Trump called on Congress to pass a "fair version" of the Clarity Act and declared that America will remain the "undisputed leader" in bitcoin and crypto.
