Bitcoin surged to $69,931.49 on Thursday. This marks a big recovery after months of selling pressure. The increase followed a strong after-hours session on Wednesday. During that session, Bitcoin briefly touched $70,000 for the first time since June. The rally is part of a broader surge in cryptocurrencies. Ether rose 18% to over $2,250, while other major tokens like Solana and XRP also gained over 10%.
Key Details
The U.S. Treasury announced it will double its long-term bond buybacks to $4 billion. This move is seen as a form of quantitative easing. It could weaken the dollar and boost demand for assets like Bitcoin. Matt Mena, a senior strategist at 21Shares, said the market saw this as a signal for more liquidity. This drove investors towards riskier assets. Additionally, forced buying from traders who had bet against Bitcoin led to over $1 billion in short positions being liquidated quickly. This also contributed to the price rise.
Background
The rally comes after a tough period for Bitcoin. It had fallen nearly 40% from a peak of $115,000 last October. Investors now think Bitcoin may have bottomed at around $58,000 earlier this summer. Some analysts suggest it could be a good time for long-term investments in the cryptocurrency market. Inflows into U.S. spot Bitcoin ETFs also reached about $1 billion in early August. This further supports demand for Bitcoin.
Related coverage: Bitcoin Tops $64,000 Amid $390 Million ETF Outflows.
The surge in Bitcoin is likely to affect the broader cryptocurrency market and related stocks. Companies like Coinbase and Circle have already seen gains in response to the rally. Investors will watch for further developments in Treasury policy and any potential regulatory changes that could impact the cryptocurrency sector.
Based on reporting by: proactiveinvestors.co.uk, fortune.com