ChainThink reports that on August 23, according to Fortune, the U.S. Treasury announced an expansion of the long-term Treasury buyback program, prompting Bitcoin to break above its weeks-long trading range of $62,000 to $67,000, rising above $77,000 that day and posting a weekly gain of over 20%.
The U.S. Treasury stated it will at least double the size of its long-term Treasury buyback program to alleviate selling pressure in the bond market.
Meanwhile, the total U.S. national debt has surpassed $40 trillion, and combined with inflation and energy price pressures, concerns over the dollar’s purchasing power and long-term fiscal health have intensified, prompting capital to flow into alternative assets such as Bitcoin and gold.
Previously, many traders bet that Bitcoin would be capped at $67,000; once it broke through, it triggered short covering, with closing buys further pushing the price higher and triggering additional liquidations.
CoinGlass data shows that over $4 billion in cryptocurrency short positions have been liquidated during this rally.
On the policy front, Trump urged Congress this week at the White House cryptocurrency meeting to advance the CLARITY Act; subsequently, CFTC Chairman Mike Selig stated that he would leverage existing authority to advance the government’s cryptocurrency policy agenda, providing further market catalysts.