Bitcoin Surges Nearly 25% on Treasury Buyback Signal
Bitcoin rose about 25% from near $64,000 to a peak above $78,000–$79,500 this week, settling near $77,000, marking its strongest weekly performance since 2023. The move followed the U.S. Treasury’s decision to double long-dated bond buybacks to $4 billion per operation, which pulled the 30-year yield down from a 19-year high near 5.34% to around 5.19%. Roughly $4 billion in short positions were liquidated over two days, amplified by about $650 million in spot Bitcoin ETF inflows and thinner weekend liquidity tests around $80,000.
Treasury buybacks manage debt composition and liquidity rather than constituting quantitative easing; analysts describe the program as a modest “soft put” on the long end. High risk-free yields had raised the hurdle for non-yielding assets like Bitcoin. Falling yields reduced that competition, while one-sided bearish positioning turned the catalyst into a violent squeeze. Spot ETFs and institutional flows provided additional demand as prices cleared the 200-day moving average near $69,000.
Key uncertainties include whether Bitcoin can hold above the 200-day average and whether long-end yields reverse higher, restoring competition from Treasuries. Some analysts view the rally as premature given still-elevated yields near 5%, while others see it as the start of a broader risk-on shift if liquidity conditions ease further. Ray Dalio separately noted Bitcoin’s potential role alongside gold as a hedge against debt pressures.
Sources: CoinDesk, CoinTelegraph, Bitcoin Magazine, ZeroHedge.
US-Canada Trade Talks Collapse, 50% Tariffs Take Effect
U.S.-Canada trade negotiations collapsed late Friday, triggering 50% U.S. tariffs on roughly $20 billion of Canadian goods effective Saturday. Canadian Prime Minister Mark Carney suspended talks, citing last-minute U.S. terms as “unfair, uneconomic,” and vowed dollar-for-dollar retaliation. U.S. Trade Representative Jamieson Greer blamed Canada for walking away from terms agreed earlier in the week.
Talks had intensified for weeks amid an ongoing trade dispute, with temporary pauses and claims of proximity to a deal covering steel, aluminum, autos, and other goods. The failure escalates tensions between major trading partners whose bilateral goods and services trade approached $900 billion annually. Retaliatory measures and higher costs for affected sectors are now immediate.
Tensions center on reliability of commitments and the economic impact of mutual tariffs on integrated supply chains. Markets will watch for broader inflation or growth effects and whether talks resume. The episode adds another layer of policy uncertainty to an already complex macro backdrop of high debt and shifting yields.
Sources: ZeroHedge, reports via major wires.
Gold Rally Accelerates Alongside Hard-Asset Bid
Gold advanced sharply, decisively clearing its 200-day moving average amid rising call buying and client interest in higher silver targets. The move coincided with the same Treasury buyback announcement that supported Bitcoin, as investors sought protection from fiscal dynamics and dollar pressure. Goldman desks noted accelerating franchise flows targeting higher gold levels and silver bets toward $90 in coming months.
Background includes elevated U.S. debt concerns, long-end yield volatility, and central bank/Chinese import demand. Hard assets have benefited as the dollar acts as a potential release valve if authorities prioritize controlling yields. Speculative and institutional flows are returning after prior consolidation.
Uncertainties include sustainability if yields re-steepen or if the Treasury program fails to contain long-end pressure. Contradictions appear between temporary liquidity signals and structural fiscal supply. Gold’s correlation with Bitcoin in the recent move highlights a shared bid for non-fiat stores of value amid policy experimentation.
Sources: ZeroHedge, CoinDesk, CoinTelegraph.