Bitcoin rises above $77,000 amid US Treasury buybacks — Fortune
Bitcoin rose above $77,000 on Friday amid the US Treasury Department’s announced increase in buybacks of long-term Treasury bonds. Gold also gained, while the US dollar faced a sell-off. Fortune reports.
On Wednesday, the US Treasury said it would at least double the volume of planned purchases of long-term government debt. The move was intended to calm the bond market after a prolonged sell-off that had led investors to demand higher yields for lending to the US government.
Gold and Bitcoin movements
According to the publication, Treasury yields and the dollar exchange rate declined after the bond buyback announcement. Investors moved more actively into alternative assets: the price of gold rose by more than 2% on Wednesday and reached $4,661 on Friday. Bitcoin gained more than 20% over the week.
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Before the rally, the cryptocurrency had traded for several weeks in a range between $62,000 and $67,000. Fortune writes that many traders had bet that the price would remain within these limits. After breaking above $67,000, holders of short positions began closing them by buying back the digital asset, which intensified the rise in its price.
Position liquidations and events in Washington
According to CoinGlass, a service that tracks the cryptocurrency derivatives market, more than $4 billion in bearish cryptocurrency positions were liquidated during the rally by Friday. The forced closure of such trades required the purchase of digital assets and created additional pressure on Bitcoin’s price.
Also on Wednesday, US President Donald Trump called on Congress at a cryptocurrency conference at the White House to quickly pass the crypto-friendly Clarity Act. Commodity Futures Trading Commission Chair Mike Selig said he would use “all available tools” to advance Trump’s agenda. On Thursday, the commission considered how to ease cryptocurrency regulation within its existing authority.
