Donald Trump · U.S. Treasury · Bitcoin · Scott Bessent · Fortune Technology
Traders bet bitcoin was stuck below $67,000. The Treasury blew that trade up in one afternoon
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Bitcoin and gold shot higher this week, with both getting a boost from some frantic action surrounding the bond market, and the cryptocurrency also benefiting from activity in Washington.
Key facts
- Bitcoin had dropped from a January high of around $95,000 to below $60,000 at the end of June
- Gold hit a high above $5,300 in January but dropped to around $4,000 in June as rising rates made interest-bearing investments more attractive
- The price of bitcoin had been stuck between $62,000 and $67,000 for weeks
- By Friday, more than $4 billion in bearish crypto positions had been liquidated during the rally, according to CoinGlass, which tracks cryptocurrency derivatives markets
Summary
Bitcoin had dropped from a January high of around $95,000 to below $60,000 at the end of June. Gold hit a high above $5,300 in January but dropped to around $4,000 in June as rising rates made interest-bearing investments more attractive. The first jolt arrived Wednesday when the Treasury Department announced plans to significantly increase its buybacks of long-term Treasurys, or government debt. There was an almost immediate reaction, which included a dollar sell-off and a jump in the value of gold and bitcoin as investors moved toward alternative assets.