Treasury Bond Buybacks Drive Bitcoin to $75,000 and Lift Crypto Equities
A US Treasury decision to double long-dated bond buybacks has triggered a massive short squeeze and ETF inflows, pushing Bitcoin near $80,000 and lifting major crypto-linked equities.
Bitcoin surged more than 21 percent last week to oscillate around $75,000, nearing the $80,000 peak last seen in May 2026. The rally followed US Secretary Scott Bessant’s announcement that the Treasury would double the size of its long-dated bond buybacks.
This macroeconomic intervention eased a severe bond-market selloff that had recently pushed 30-year yields to 2007 highs. Seema Srivastava, a senior research analyst at SMC Global Securities, explained that lower yields reduce the appeal of safe cash-like returns. She added that this Treasury intervention signals liquidity support, which crypto traders read as a green light for scarce global assets.
Rachael Lucas, an analyst at BTC Markets, identified the Treasury action as the primary catalyst. She noted that the move pulled long yields lower and lifted risk appetite broadly, though she cautioned that nothing has rewritten Bitcoin’s long-term case or its inherent volatility.
The initial price spike triggered a massive short squeeze, forcing leveraged bears to cover their positions. This cascade resulted in over $1 billion in liquidations within 60 minutes and total bear losses exceeding $3 billion.
Institutional demand compounded the upward momentum. Spot Bitcoin exchange-traded funds recorded $458 million in single-day inflows, led by BlackRock’s IBIT, bringing total recent inflows to $500 million.
Crypto-linked equities responded sharply to the renewed liquidity and trading volumes. Srivastava observed that these stocks benefit from higher Bitcoin prices and ETF custody fees, a dynamic reinforced by Strategy Inc.’s $2.5 billion Bitcoin purchase this week. Consequently, Robinhood Markets finished approximately 14 percent higher, while Coinbase Global rallied over 8 percent and Strategy Inc. surged more than 6 percent.
Not all related stocks maintained the momentum. Crypto miners including MARA Holdings, Riot Platforms, CleanSpark, and Hut 8 Corp saw early Friday buying but ultimately finished in negative territory. Meanwhile, Ross Stores shares ended around 4.50 percent higher.
Srivastava summarized the broader market trend as a complex convergence of macro liquidity, forced short covering, and renewed ETF demand. She concluded that Bitcoin and crypto equities are climbing in tandem as liquidity, leverage, and legislation align.
The shifting macroeconomic landscape is also prompting portfolio reassessments among veteran investors. Bridgewater Associates founder Ray Dalio recently advised underweighting bonds and holding 10 to 15 percent of a portfolio in gold and a fraction in Bitcoin to reduce risk and boost returns.
