Abstract:
Bitcoin has had an unforgettable late-summer run. Earlier on Tuesday, Bitcoin prices topped $80,000 for the first time in 15 weeks. Bitcoin has gained 28% over the past eight trading days, adding about $350 billion to its total market capitalization. It only took about a week for Bitcoin to recover all of its losses over the past three months.
Driven by this, data showed that cryptocurrency concept stocks rose sharply. Shares of Michael Thaler's Strategy (formerly MicroStrategy) are up 36% in the past month; Circle is up 43%; Coinbase is up 16%; and Robinhood is up 12%.
In the past two weeks, the multiple catalytic factors driving the rise of Bitcoin have attracted market attention.
The U.S. Treasury Department surprised financial markets last week by announcing it would raise the maximum size of a single long-term bond repurchase operation from $2 billion to $4 billion. Previously affected by continued inflation and war pushing up energy prices, U.S. benchmark Treasury bond yields soared to 20-year highs. The Treasury Department's intervention directly targeted the 10-year, 20-year and 30-year U.S. bonds.
U.S. Treasury Secretary Scott Bessent said that he has a "huge policy toolkit" at his disposal and will continue to deal with the rise in Treasury yields.
The Ministry of Finance intervened in the secondary market to repurchase bonds, aiming to inject market liquidity, stop the decline in bond prices, and at the same time reduce the rising borrowing costs of consumers and businesses.
“The reason why Bitcoin is rising is that the market no longer focuses on inflation and instead discusses stimulus policies, and this type of asset will benefit from it.” Jim Bianco, president of Bianco Research, said on the Yahoo Finance program.
In addition, the White House held a meeting last week, and President Trump met with representatives of leading companies in the encryption industry such as Coinbase and Robinhood, which further improved the Bitcoin market sentiment. (Disclosure: Yahoo Finance has a partnership with Coinbase)
Trump called on Congress to pass a “fair version” of the Clarity Act and declared that the United States will continue to remain the “undisputed leader” in the field of Bitcoin and encryption.
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