Global Finance News
21 Aug 2026, 11:13
Bitcoin Surges 8% Above $77,000 as Treasury Bond Buybacks and Crypto Policy Optimism Fuel Rally
Bitcoin extended its powerful rebound on Friday, jumping 8.2% to around $77,757 and briefly approaching $80,000. The cryptocurrency has now gained roughly 24% this week, putting it on course for its strongest weekly performance since March 2023.
The latest advance is closely linked to the U.S. Treasury's decision to substantially increase buybacks of longer-dated government bonds. Treasury plans to at least double liquidity-support buybacks of 10- to 30-year securities to $4 billion per operation. Markets have interpreted the move as an attempt to relieve pressure on long-term yields and improve liquidity in the Treasury market.
While the program is not Federal Reserve quantitative easing, it has nevertheless encouraged a "debasement trade." The dollar has weakened as investors question whether attempts to suppress long-term borrowing costs could shift some of the pressure from the bond market into the currency. That environment has simultaneously supported assets such as Bitcoin and gold.
Crypto-specific developments are providing another tailwind. Investors have become more optimistic about U.S. digital-asset regulation following renewed political momentum around the Clarity Act and broader efforts to establish clearer rules for cryptocurrency markets.
The rally is also broad rather than limited to Bitcoin. Ethereum, Solana and XRP have advanced strongly alongside Bitcoin, while crypto-related equities have benefited from the renewed risk appetite.
Bitcoin's move above $77,000 therefore reflects several catalysts working simultaneously: Treasury bond-market intervention, dollar weakness, expectations for improved financial liquidity and regulatory optimism. The combination has transformed what began as a rebound earlier this week into one of Bitcoin's strongest rallies in several years.
Bitcoin extended its powerful rebound on Friday, jumping 8.2% to around $77,757 and briefly approaching $80,000. The cryptocurrency has now gained roughly 24% this week, putting it on course for its strongest weekly performance since March 2023.
The latest advance is closely linked to the U.S. Treasury's decision to substantially increase buybacks of longer-dated government bonds. Treasury plans to at least double liquidity-support buybacks of 10- to 30-year securities to $4 billion per operation. Markets have interpreted the move as an attempt to relieve pressure on long-term yields and improve liquidity in the Treasury market.
While the program is not Federal Reserve quantitative easing, it has nevertheless encouraged a "debasement trade." The dollar has weakened as investors question whether attempts to suppress long-term borrowing costs could shift some of the pressure from the bond market into the currency. That environment has simultaneously supported assets such as Bitcoin and gold.
Crypto-specific developments are providing another tailwind. Investors have become more optimistic about U.S. digital-asset regulation following renewed political momentum around the Clarity Act and broader efforts to establish clearer rules for cryptocurrency markets.
The rally is also broad rather than limited to Bitcoin. Ethereum, Solana and XRP have advanced strongly alongside Bitcoin, while crypto-related equities have benefited from the renewed risk appetite.
Bitcoin's move above $77,000 therefore reflects several catalysts working simultaneously: Treasury bond-market intervention, dollar weakness, expectations for improved financial liquidity and regulatory optimism. The combination has transformed what began as a rebound earlier this week into one of Bitcoin's strongest rallies in several years.
