Bitcoin has climbed by about $10,000 in the past week, breaking above $77,000 for the first time since May after the US Treasury doubled the maximum size of its buyback operations for longer-dated bonds.
The cryptocurrency briefly reached $79,500 on Thursday, triggering a wave of forced liquidations and wiping out billions of dollars in bets against it. Bitcoin was trading around the $77,000 mark on Friday after gaining almost 24% over seven days.
The move ended a six-week spell in which bitcoin had remained largely between $60,000 and $65,000. Its rally gathered pace after the US Department of the Treasury announced that it would at least double the size of its liquidity-support buybacks for longer-dated coupon securities.
The maximum value of each operation will rise from $2bn to $4bn. The new limit will apply from 9 September and cover Treasury bonds maturing in 10 to 30 years during the current refunding quarter, which ends on 4 November.
Treasury buybacks allow the government to repurchase older and less liquid bonds before they mature. The process can reduce borrowing costs and release cash into financial markets.
Following the announcement, the yield on 10-year Treasury bonds fell by about six basis points to approximately 4.647%. The 30-year yield dropped nine basis points to 5.196%, moving further away from the 5.33% level reached earlier this month, its highest point since 2007.
Financial markets interpreted the larger buybacks as a sign of increased liquidity. Traders subsequently moved into bitcoin, viewing it as a hedge against the prospect of renewed monetary easing.
Bernstein strategist Gautam Chhugani linked the move directly to the Treasury decision.
Bitcoin’s advance accelerated after it moved through resistance close to $70,000. It had not closed above that level since May, and short sellers who had built positions during the prolonged period of limited price movement were caught offside.
As the price rose, automated liquidation systems began closing those positions. Traders betting against bitcoin lost $3bn over a single 24-hour period, while about 172,108 traders were liquidated across derivatives exchanges.
It was the biggest short-side wipeout since 2021, exceeding the previous record of $2.47bn set in October 2025. Bitcoin rose by 11% during that 24-hour period, with forced buying adding to the momentum generated by the Treasury announcement.
The rally also came as political attention on digital assets increased. President Donald Trump publicly called on Congress to pass the CLARITY Act during the same period, providing an additional regulatory boost to the market.
The proposed legislation would set clearer federal rules for digital asset markets and has become one of the most closely watched issues for cryptocurrency investors this year.
Bitcoin’s gains coincided with a White House meeting between Trump and cryptocurrency industry leaders, including executives from Coinbase and Robinhood. No policy decision was announced after the meeting, but its timing strengthened the view that Washington is becoming more supportive of the sector.
That perception has repeatedly influenced bitcoin’s price this year.
US equity markets also responded positively to the Treasury announcement. The S&P 500 rose by 28.12 points to close at 7,719.88, while the Dow Jones Industrial Average gained 145.50 points to finish at 53,488.90. The Nasdaq Composite, however, fell by 38.22 points to 26,251.49.
Bitcoin is now approaching $80,000, a price level it has not reclaimed since May. Momentum indicators have also begun to improve after several weeks of consolidation, with traders watching to see whether the latest rally can continue.
