Bitcoin Finally Wakes Up While U.S. Debt Hits $40 Trillion

THE GIST

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Bitcoin bros have a new bro: Treasury Secretary Scott Bessent.

Days after Bessent announced the Treasury planned to double long-term debt buybacks from $2 billion to at least $4 billion, Bitcoin jumped to nearly $80,000. The rest of the crypto market followed. The question is: can it last?

WHAT HAPPENED

Bitcoin is back, rebounding from its early-February 2026 lows after nearly 200 days of sideways action. It spent about 120 days falling from its $130,000 highs to as low as $59,800, or a 52% drop.

Why Bitcoin fell from such heights is a mix of conspiracy and the commodity's four-year cycle. After Bitcoin peaked in late December 2017, it took about 1,420 days to reach its then all-time high of ~$69,000 in December 2021. Bitcoin took the same amount of time to reach its October 2025 high of ~$130,000, only to fall once again.

What changed?

On August 19, Bessent stepped in with his now-infamous debt-management decision involving U.S. bonds, and told the Fed to kick rocks. Yields fell from their 19-year highs, making Bitcoin, still viewed as a risky stock, that much more attractive. Another $2.74 billion in short positions surely helped, too, as Bloomberg reports.