Bitcoin Blasts Back Above $77K as US Treasury Buybacks Ignite a Crypto Rally

Bitcoin surged toward $77,000 on Friday, marking its strongest week of gains so far in August as the broader crypto market roared back to life. The catalyst was Washington rather than Wall Street: the US Treasury announced it would significantly increase buybacks of longer‑dated government bonds, a move aimed at calming the recent bond market sell‑off. The prospect of lower long‑term yields pulled the dollar down and pushed investors back into risk assets, with digital tokens among the main beneficiaries.

Exchange data showed a wave of short liquidations as prices spiked, with hundreds of millions of dollars in bearish bets wiped out within 24 hours. At the same time, regulators moved the story forward rather than shutting it down. The US Securities and Exchange Commission advanced a draft framework for registering and disclosing crypto asset offerings, while spot bitcoin and ether ETFs continued to attract fresh inflows. Together, those factors helped improve institutional sentiment toward the sector.

The rebound has quickly shifted market psychology from fear to greed, according to widely watched sentiment gauges. That has some strategists warning that the rally is running hot, especially with policy rates still high and macro data mixed. For now, though, bitcoin is again trading as a quasi “digital store of value” alongside gold, and many investors see the Treasury’s bond‑buying program as an informal backstop for risk assets – at least as long as it lasts.