Pete GannonAdd Axios as your preferred source tosee more of our stories on Google.Data: CoinGecko; Chart: Pete Gannon/AxiosBitcoin just had itself a week.The cryptocurrency is up nearly 20% from where it was on Wednesday morning. 🤔 So are the bitcoin bulls back?The jury's still out, Axios' Pete Gannon writes.Catch up quick: Bitcoin, which had been languishing below a price of $65,000 since early June, jolted to life Wednesday morning, when the Treasury Department announced plans to step up buybacks of long-dated Treasury securities.At first, it smelled of a regular old risk-on trade, with stocks moving up alongside the move in crypto.But bitcoin kept on rallying as stocks fizzled, when bond yields sprung right back.🔍 Between the lines: Treasury's apparent signal that the government would be willing to step in to fight rising yields, has revived the debasement trade — and that's been good for assets like bitcoin and gold.Crypto also got a boost from Trump urging Congress to pass the Clarity Act, and from the SEC outlining new rules for issuance. Another factor at work is a sizable short squeeze, with about $2.5 billion of bitcoin short positions liquidated over the past three days, according to CoinGlass data.That means that the initial price rally has been juiced by forced buying.🗣️ What they're saying: "I'd be cautious about calling this the end of the bear market," AdLunam market analyst Jason Fernandes told CoinDesk.Without new money coming in and interest rates easing, "my concern is that [bitcoin] could run out of steam at overhead resistance," he said.
Bitcoin's bounce
Pete GannonAdd Axios as your preferred source tosee more of our stories on Google.Data: CoinGecko; Chart: Pete Gannon/AxiosBitcoin just had itself a week.The cryptocurrency is up nearly 20% from where it was on Wednesday morning. 🤔 So are the bitcoin bulls back?The jury's still out, Axios' Pete Gannon writes.Catch up quick: Bitcoin, which had been languishing below a price of $65,000 since early June, jolted to life Wednesday morning, when the Treasury Department announced plans to step up buybacks of long-dated Treasury securities.At first, it smelled of a regular old risk-on trade, with stocks moving up alongside the move in crypto.But bitcoin kept on rallying as stocks fizzled, when bond yields sprung right back.🔍 Between the lines: Treasury's apparent signal that the government would be willing to step in to fight rising yields, has revived the debasement trade — and that's been good for assets like bitcoin and gold.Crypto also got a boost from Trump urging Congress to pass the Clarity Act, and from the SEC outlining new rules for issuance. Another factor at work is a sizable short squeeze, with about $2.5 billion of bitcoin short positions liquidated over the past three days, according to CoinGlass data.That means that the initial price rally has been juiced by forced buying.🗣️ What they're saying: "I'd be cautious about calling this the end of the bear market," AdLunam market analyst Jason Fernandes told CoinDesk.Without new money coming in and interest rates easing, "my concern is that [bitcoin] could run out of steam at overhead resistance," he said.
Bitcoin surged 20% this week on Treasury buyback signals and $2.5B short liquidations, but forced buying rather than new capital drove the rally. Without sustained inflows and with rates easing, the bounce could stall at resistance levels.
