Key Highlights
- Ether surged 18% within a 24-hour period, climbing above $2,250 and posting the strongest weekly performance among leading digital currencies
- Bitcoin broke through the $69,100 level, registering an 8% daily increase and 9% weekly advance
- Treasury bond buyback program expansion doubled in size, catalyzing widespread market momentum
- Short squeeze eliminated approximately $1.4 billion in bearish positions within a four-hour window
- Major US equity indices recorded slight advances, with all three primary benchmarks gaining roughly 0.2%
Digital currency markets experienced a powerful upward movement Thursday following the Treasury Department’s announcement to significantly increase its bond repurchase program, creating momentum that lifted both cryptocurrency prices and traditional equities.
Ether dominated the rally, surging approximately 18% during a 24-hour span to reach just over $2,250. This performance extended its weekly appreciation to roughly 20%, marking the strongest showing among prominent digital assets.
Bitcoin advanced to slightly above $69,100, recording an approximately 8% daily gain. The leading cryptocurrency briefly approached $69,900 during overnight trading before experiencing a modest pullback. This represented a price movement exceeding $5,700 from Wednesday’s trough near $64,100.
Treasury Announcement Ignites Market Momentum
The primary driver emerged when Treasury Secretary Scott Bessent revealed plans to expand buyback operations for extended-maturity bonds by at least double their current volume. Market participants interpreted this development as an injection of liquidity into the government debt marketplace.
Treasury securities experienced sharp appreciation following the announcement. The benchmark 10-year yield declined to approximately 4.63%, while the 30-year rate dropped to 5.18%. A Bloomberg gauge monitoring Treasuries with maturities of 20 years or longer recorded its most substantial one-day advance since February 2025.
During Wednesday’s price surge, approximately $1.4 billion worth of short positions faced liquidation within a compressed four-hour timeframe. Bearish market participants scrambled to exit their positions as price action turned unfavorable.
Widespread Digital Asset Appreciation
Additional cryptocurrencies demonstrated significant strength. Hyperliquid’s HYPE token increased more than 19% to approach $70. Solana advanced over 10% to reach $84.50. XRP gained 10% to hit $1.09, reclaiming the psychological dollar threshold lost earlier during the week. Dogecoin contributed roughly 8% gains.
BNB and Tron underperformed their peers. BNB advanced 3.5% while maintaining a weekly gain slightly above 2%. Tron remained essentially unchanged and stood as the sole major cryptocurrency posting weekly losses.
Optimism received an additional boost from a White House gathering where President Donald Trump met with senior leadership from Coinbase, Gemini, Ripple, and Chainlink Labs, calling on Congressional lawmakers to push forward the Digital Asset Market Clarity Act.
Equity Markets Post Moderate Advances
American stock indices climbed following the bond market developments. The Dow Jones Industrial Average increased approximately 120 points, representing a 0.2% gain. Both the S&P 500 and Nasdaq recorded advances around 0.2%.
Healthcare emerged as a leading sector, supported by Moderna progress in cancer vaccine research. Consumer discretionary and materials sectors also demonstrated relative strength. Technology and industrial segments underperformed amid ongoing pressure on artificial intelligence infrastructure-related companies.
Federal Open Market Committee meeting minutes revealed disagreement among officials regarding potential interest rate increases to combat inflation, though financial markets displayed minimal reaction to the disclosure.
Ether’s price action warrants close monitoring. Market observers highlight that rapid advances driven primarily by liquidity announcements rather than protocol-specific fundamentals frequently experience partial retracements.
The post Bitcoin (BTC) Soars Past $69K as Treasury Bond Buyback Program Fuels Crypto and Stock Rally appeared first on Blockonomi.
Be the first to comment