Bitcoin traded above $77,000 on Saturday, maintaining gains after a short squeeze fueled by the U.S. Treasury’s decision to double long-term public debt buybacks from $2 billion to $4 billion per operation. The cryptocurrency approached $80,000 on Friday before paring gains, with its 200-day moving average holding near $69,000.
The surge followed the Treasury’s announcement, which aims to enhance liquidity in older securities and manage debt composition. The move coincided with a decline in the 30-year Treasury yield from a 19-year high of 5.34% to about 5.19%, easing pressure on risk assets. High bond yields had previously competed with Bitcoin for capital, as the digital asset does not generate yield.
Liquidations of bearish positions exceeded $4 billion on Thursday and Friday, amplifying the upward momentum. Binance recorded $1.26 billion in Bitcoin futures trading volume within a 60-second window during the rally. U.S. Bitcoin ETFs attracted approximately $650 million in net inflows, further supporting the market.
Altcoins also posted gains, with Ether rising 0.76% to $2,420.39, XRP advancing 5.2% to $1.4967, Solana up 2.2%, BNB climbing 2.77% to $696.93, and Cardano surging 4.5% to $0.2253. Dogecoin jumped 7.21%, while the TRUMP meme token rallied 41.4%.
Analysts noted that short squeezes and breakouts above key technical levels often signal market bottoms, though some warned that sustained momentum would require continued ETF inflows and broader monetary easing. A renewed spike in Treasury yields could challenge the breakout and increase costs for leveraged long positions.
