Key highlights:

  • Bitcoin broke $77,000 for the first time in three months
  • About $400 billion in capital flowed into the crypto market in just 5 days
  • Scott Bessent shared that the Treasury could make more debt buybacks than what was planned

The crypto market is back making strides, with Bitcoin surging past $77,000. Traders are now piling into digital assets at a pace not seen since BTC hit its all-time high of $126,198 in October 2025. 

The rally comes just as the U.S. Treasury is ramping up efforts to buy back government debt and ease pressure building in the bond market.

Bitcoin leads a blistering rally

BTC price climbed from around $64,000 at the start of the week to around $77,000, a jump of about $13,000. The gain works out to about 22%, topping $76,000 for the first time in three months.

 

The coin has added about $400 billion to its total market cap, equal to a fifth of the total market's value from just before the rally began.

The move triggered major liquidations among traders betting against the price, with at least $4 billion worth of short positions wiped out over five days.  The crypto market also saw its seventh-largest liquidation event ever as $3.5 billion in leveraged positions closed out within 24 hours, according to Kobeissi Letter.

Sentiment also changed as a result. The crypto market fear and greed index jumped to 72, a reading that signals greed. What is quite interesting is that there was no clear catalyst behind the newfound momentum.

Treasury steps up debt buybacks 

The rally came just as Treasury Secretary Scott Bessent told CNBC on Thursday that the government's buyback of its own debt could grow more than the $4 billion already announced. 

Treasury said Wednesday it would double its scheduled buybacks of longer-dated debt from $2 billion, a move that pushed yields lower at the time.

Bessent said the department plans to keep expanding the size of these buybacks, though he declined to commit to a specific number, saying it would depend on market conditions. 

“We’ll see what the conditions are, and you know we will analyze them,” he said. “All we’re trying to do is get people to focus on the fundamentals and not trade the headlines during a quiet period in a thin market.”

The 30-year bond was trading around 5.235%, a level not seen since before the 2008 financial crisis. The benchmark 10-year yield ticked up about 5 basis points to 4.704% after dipping during Bessent's remarks. He described liquidity in the 30-year bond as very weak, which is why the Treasury is stepping in.

The U.S national debt hit $40 trillion this week, though Bessent said that stronger economic growth could help manage it over time. He added that he plans to meet with Office of Management and Budget head Russell Vought to discuss reducing the deficit.

Bessent also pushed back on the premise that Treasury's buybacks could clash with the Federal Reserve's policy goals. He said that the two institutions would coordinate on changes to their balance sheets without affecting interest rate decisions.

Some economists had highlighted the tension between Treasury's push to ease borrowing costs and the Fed's cautious stance on inflation.