Bitcoin blasted past $79,000 on Monday, climbing as high as $79,954 and closing its best week since 2023. The 25% seven-day run comes after the Treasury Department said it would at least double the size of its long-dated bond buybacks, a move that pushed yields down and sent the dollar sliding.
Why the Treasury call lit a fire
The buyback announcement didn't just lift Bitcoin. Gold shot up too, and the dollar is now at a three-month low, on track for its worst week of August. Lower yields make non-yielding assets like Bitcoin and gold more attractive, and that math is what drove this week's rally. The coin was trading more than 2% higher over 24 hours at last check.
The ETF inflow engine
U.S. Bitcoin ETFs took in $1.9 billion this week, their best showing since October, according to Farside Investors. The funds are run by BlackRock, Fidelity, Grayscale and Morgan Stanley. Bloomberg Intelligence's Eric Balchunas called it a supply shock dynamic - when the ETFs buy up a chunk of the available supply and there's not much left to trade.
Washington moves on the Clarity Act
President Donald Trump met with crypto executives and urged lawmakers to pass the Clarity Act, which would draw a clear legal line between securities, commodities and payment stablecoins. A vote is scheduled for September. That's the first major U.S. crypto regulation framework in years.
The bumpy road back
This week's surge is a sharp reversal. Bitcoin mostly traded below $65,000 in June and July. October's all-time high was crushed by the biggest liquidation event in crypto history, when over $19 billion in bets got closed. Then the Fed made clear it wasn't in a hurry to cut rates, and investor money kept chasing AI stocks. The turn in sentiment, driven by the Treasury's pivot, is why this week's move hit so hard.
