Why Crypto's Rally Could Survive Jackson Hole in 2026

Bitcoin just ripped 21% in a single week — its best run since early 2025. And here’s the strange part: it happened right before the most hawkish Federal Reserve chair in a generation takes the stage at one of the world’s most closely watched economic events. Here’s what’s actually driving the move and why Jackson Hole might not be the buzzkill everyone expects.

What Sparked the Rally

Let’s get the numbers out of the way. Bitcoin climbed to $77,100, briefly touching $79,000 at its peak. Ethereum hit $2,442 — up 28% for the week. XRP surged 46%. Solana gained 24%. Even Dogecoin popped 30%.

But the headline numbers don’t tell you why. Most coverage points to general “risk-on” sentiment. We think the real catalyst is more specific — and more important.

The U.S. Treasury announced it would double its long-term bond buyback operations from $2 billion to $4 billion per session, targeting 10-year, 20-year, and 30-year Treasuries. That’s a direct liquidity injection into the financial system. Bernstein strategist Gautam Chhugani put it plainly: the surge was “driven by Treasury’s move to buy back bonds at the longer end of the yield curve.”

This matters because Bitcoin has always been a liquidity barometer. When money is flowing, crypto catches it. The Treasury move behind this rally actually started building momentum earlier this month, and last week’s doubling supercharged the trend.