Bitcoin approached $80,000 and had its best week since 2023. What’s next?

What Boosted the Cryptocurrency

Over the past 24 hours, according to data from CoinMarketCap, Bitcoin jumped nearly 8% and reached a high of over $79,240. And since the start of the week, the leading digital currency has risen in price by about 25%. Bloomberg calls this weekly gain the largest since March 2023.

“The main driver [for Bitcoin] was the U.S. Treasury’s decision to double its purchases of long-term bonds [to $4 billion], which led to [some] decline in long-term bond yields [from multi-year highs] and generally increased investors’ risk appetite,” says Rachel Lucas, an analyst at BTC Markets. She noted, however, that the Treasury Department’s decision did not change either Bitcoin’s long-term outlook or its volatility.

An additional factor driving growth was U.S. President Trump’s meeting at the White House with executives from crypto companies, including the CEOs of Coinbase and Payward. During the event, Trump called on Congress to pass the Clarity Act—a bill intended to establish clearer rules for the cryptocurrency market.

The return of euphoria to the cryptocurrency markets forced traders to liquidate billions of dollars in short positions on Bitcoin, according to Bloomberg. According to Coinglass, over the past three days, bets on a Bitcoin decline totaling approximately $2.5 billion were liquidated, and bets on all crypto assets totaled $4.5 billion. The short squeeze remains one of the main drivers of Bitcoin’s rise in recent days, notes Adam Morgan McCarthy, a lead researcher at LO:TECH. Therefore, in his view, the cryptocurrency’s current rally appears less convincing than gold’s rise: “Gold carries the key macro signal of the week: it has risen steadily as the Treasury doubled the volume of its bond buyback operations—and without any forced buying that inflated Bitcoin’s price,” — said McCarthy. “If you want to understand where investors are actually hedging against currency and inflation risks this week—it’s gold, not Bitcoin,” he asserted.