Bitcoin maintained gains above $77,000 on Saturday after a short squeeze fueled by the U.S. Treasury’s decision to double long-dated bond buybacks to $4 billion per operation. The cryptocurrency traded at $77,025.1 as of 05:50 ET, down 1.11% from Friday’s peak near $79,200, according to market data.
The rally coincided with roughly $4 billion in short positions liquidated over Thursday and Friday, according to trading analytics. Binance recorded $1.26 billion in Bitcoin futures volume during a single 60-second interval, underscoring the volatility. U.S. Bitcoin exchange-traded funds added $650 million in net inflows, further supporting the upward momentum.
The Treasury’s expanded buyback program, which began increasing purchases of older government bonds, contributed to a decline in the 30-year yield from a 19-year high of 5.34% to about 5.19%. Analysts noted the program is distinct from quantitative easing, as it does not involve the Federal Reserve creating new reserves to purchase assets. Lower long-term yields reduce the opportunity cost of holding non-yielding assets like Bitcoin, which competes with bonds for investor capital.
Altcoins also posted gains, with XRP up 5.2% to $1.4967, Cardano rising 4.5% to $0.2253, and Solana climbing 2.2%. The meme token TRUMP surged 41.4%. Ether, the second-largest cryptocurrency, gained 0.76% to trade at $2,420.39.
Market sentiment received additional support from renewed White House pressure on Congress to advance the CLARITY Act, a proposed regulatory framework for digital assets. Analysts remain divided on the sustainability of the rally, with some citing the short squeeze and technical breakout above the 200-day moving average near $69,000 as signs of a market bottom. Others caution that sustained ETF inflows, broader monetary easing, and stable Treasury yields are necessary to prevent a reversal amid elevated leveraged long positions.
