ETFs to Watch After Revival of Bitcoin

Bitcoin surged past $80,000 on Aug. 25, 2026, after the U.S. Department of the Treasury announced that it would double its long-dated bond buyback program. The "debasement trade" amid escalating national debt concerns mainly led to the rise in Bitcoin prices. Short squeeze and solid ETF inflows can also be the reasons behind the rally in the cryptocurrency.

The move represents a sharp turnaround from Bitcoin's prolonged weakness earlier this year. After falling from its January high of around $95,000 to below $60,000 in late June, Bitcoin has staged a solid recovery and is currently trading around $79,000.

U.S. Treasury Policy Adds Liquidity & Debasement

A major catalyst came last week from the U.S. Treasury's announcement that it would increase purchases of longer-dated government bonds.

The move initially helped push yields lower and improved sentiment toward risk assets. However, concerns about inflation, government debt and potential currency debasement strengthened the appeal of scarce assets such as Bitcoin and gold.

This creates an interesting investment dynamic for Bitcoin. If Treasury actions help stabilize the bond market and reduce pressure from long-term yields, financial conditions could become more supportive of risky assets.