Bitcoin Surged More Than 20%. Four Market Insiders Explain Why

Bitcoin has gone from looking stuck to moving like a bull market again in the space of a week. The cryptocurrency climbed roughly 23% over seven days, briefly breaking above $81,000 before easing back toward $79,000 on Wednesday. The move spilled across the wider crypto market, with Ether, Solana and XRP also posting sharp gains before traders began taking some profits.

The speed of the rally was remarkable, but the ingredients behind it were unusually clear. A change in U.S. Treasury policy helped kick-start the move, Washington supplied a fresh dose of regulatory optimism, institutional money returned to Bitcoin ETFs, and a heavily short market provided the fuel to turn an ordinary rebound into a squeeze.

The first catalyst arrived in the bond market. The U.S. Treasury announced it would double the size of buybacks for longer-dated government debt from $2 billion to at least $4 billion per operation after long-term yields hit their highest levels since 2007. The initial reaction pushed yields lower and weakened the dollar, creating a more favorable environment for Bitcoin, gold and other risk assets.

“A lot of things lined up at once,” said Todd Ault, Founder of Ault Blockchain.

The dollar weakened, the Treasury stepped into the bond market, too many people were leaning short, and President Trump came out strongly behind getting crypto legislation done. Bitcoin was already wound pretty tight, so once it started moving, there was a lot of fuel behind it.