TL;DR:
- Bitcoin climbed to $79,400 and has gained nearly 24% on the week, its best weekly performance since March 2023.
- $3.3 billion in derivatives positions were liquidated on Wednesday and another $1.25 billion in the last 24 hours, according to CoinGlass.
- Spot BTC ETFs in the U.S. recorded net inflows of $606 million on Thursday, the largest single-day flow since May 1.
Bitcoin reached $79,400 this Friday and is trading above $76,800, up 7% in the last 24 hours, according to CoinMarketCap. The cryptocurrency has accumulated nearly 24% in gains since Monday and is on track for its best week since March 2023, driven by the U.S. Treasury’s announcement of a bond buyback plan designed to reduce long-term yields.
The Treasury’s Bond Buyback Plan
Bitcoin’s surge pulled the rest of the market along with it. XRP rose 19% and led among large-cap assets, with 24-hour volume jumping 139%. ENA gained 42% in that period and is up 56% on the week after announcing a $1 billion institutional credit line with FalconX. ZEC climbed 12.5% and LINK 32% on the week. The Altcoin Season index fell from 36 to 33, reflecting BTC’s dominance advancing to 59.9%.
James Butterfill, head of research at CoinShares, attributed BTC’s rally to a macroeconomic context rather than factors specific to the crypto industry. “Bitcoin remains extremely sensitive to changes in liquidity expectations and real yields, and has responded accordingly,” he said. His analysis follows lower-than-expected inflation data and weak employment figures that improved expectations of a shift in Federal Reserve policy.
Bitcoin Faces the $80,000 Mark
The $80,000 level is a critical validation zone. Butterfill describes it as an “important frontier” and warns that a decisive breakout will likely require confirmation that the Fed is moving away from monetary tightening, a signal that could come at the Jackson Hole symposium next week.
Derivatives data underscores the intensity of Bitcoin’s move. Liquidations total $4.55 billion between Wednesday and Friday, with short positions accounting for $1.06 billion of the last 24 hours. Open interest in BTC futures climbed 7.38% to $57.7 billion, its highest level since June. The close of U.S. markets will leave Bitcoin exposed to the lower liquidity of the weekend, a period in which it is historically more vulnerable to geopolitical events.
