Bitcoin Holds Near $77,000 After Strongest Weekly Gain in Years
Bitcoin surged roughly 22-23.6% last week, climbing from around $62,000 to a high near $79,500 before consolidating near $77,000-$77,800. Ether gained over 30%, with both assets reclaiming their 200-day moving averages amid heavy short liquidations and renewed institutional buying. Spot Bitcoin ETFs recorded about $1.92 billion in net inflows, the strongest week since October 2025, while total crypto ETF inflows hit roughly $2.6 billion.
The move followed months of tight consolidation and low volatility that left positioning highly sensitive to catalysts. Treasury Secretary Scott Bessent’s announcement expanding long-dated bond buybacks to at least $4 billion per operation weakened the dollar and initially pressured yields, reviving the debasement trade into scarce assets. Gold also advanced sharply above $4,600.
Key tensions remain: long-term Treasury yields have stayed elevated near multi-year highs around 5.25% for the 30-year, as the $40 trillion national debt and ongoing deficits limit the buybacks’ impact. Options positioning now appears skewed toward longs after the squeeze, raising the risk of a sharper downside move if momentum fades, while resistance sits near the 50-week moving average around $81,000.
Sources: CoinDesk, Cointelegraph.
Treasury Buybacks Fail to Tame Yields, Fueling Hard-Asset Rotation
U.S. Treasury Secretary Scott Bessent doubled the maximum size of certain long-term bond buybacks, aiming to ease borrowing costs at the long end of the curve. Yields barely budged and remain near levels last seen in 2007, while the dollar index slipped below its 200-day average. Markets interpreted the step as a signal of official concern over fiscal pressures, accelerating flows into bitcoin and gold as hedges against currency debasement.
U.S. debt has surpassed $40 trillion, with persistent deficits implying continued heavy issuance. Analysts note the buybacks provide temporary liquidity but do little against structural term-premium pressures from debt, inflation risks, and energy prices tied to Middle East tensions. Ray Dalio highlighted rising U.S. debt risks and suggested investors hold “a bit of Bitcoin,” though he still favors gold more heavily.
The contradiction is clear: policy intended to support bonds instead amplified the narrative that high-debt governments may resort to measures eroding fiat purchasing power. This has supported risk assets short-term but leaves uncertainty over whether stubbornly high yields eventually cap further gains in zero-yielding hard assets or prompt even more aggressive intervention.
Sources: CoinDesk, ZeroHedge.
Jackson Hole and PCE Data Loom as Next Catalysts
Markets turn to this week’s Jackson Hole Symposium, where Fed Chair Kevin Warsh delivers his keynote, alongside July core PCE inflation data (expected 0.2% month-over-month, 3.3% year-over-year) and Q2 GDP revision. Bitcoin enters with strong monthly momentum, up about 23% month-to-date and on track for its best August in years.
Warsh’s comments will be scrutinized for any shift on rates or balance-sheet policy after the recent fiscal signals. A stance keeping further tightening distant could sustain the weaker-dollar backdrop, while a hawkish tone risks profit-taking after the rapid rally. Geopolitical factors, including U.S.-Iran dynamics affecting oil, add another layer of uncertainty.
The setup pits residual bullish momentum and ETF demand against elevated valuations, crowded longs, and macro data that could reprice rate expectations. Outcomes remain highly path-dependent on Warsh’s messaging and the inflation print.
Sources: CoinDesk.