NEW YORK — Bitcoin staged a powerful rebound Friday, climbing more than 6% and pushing above $77,000 as investors responded to a surprise move by the U.S. Treasury to increase its purchases of longer-dated government bonds.
The cryptocurrency rose to around $77,188, according to AFP reporting carried by Philstar, putting Bitcoin more than 20% higher for the week and at its strongest level since May.
The rally came alongside a broader recovery in global equities after a turbulent week dominated by surging bond yields, inflation concerns and heightened geopolitical tensions.
But beneath the headline gains, investors are watching a much bigger question: Can the Treasury’s intervention calm the bond market for long—or is this rally only a temporary reprieve?
Why Bitcoin suddenly jumped
The U.S. Treasury announced that it would double the size of planned buybacks of longer-dated Treasury securities to at least $4 billion per operation, covering bonds in the 10- to 30-year range. The larger buybacks are scheduled to take effect from September 9 through November 4.
The move followed a sharp sell-off in the U.S. bond market that pushed the 30-year Treasury yield to 5.34%, its highest level since 2007.
Higher bond yields can put pressure on riskier assets such as stocks and cryptocurrencies because they raise borrowing costs and increase the relative appeal of safer fixed-income investments.
The Treasury’s intervention initially helped ease yields and improved investor sentiment. That shift provided additional fuel for Bitcoin and other risk assets.
However, Reuters reported that the relief in the bond market was short-lived, with yields beginning to climb again.
Bitcoin’s rally goes beyond Treasury buybacks
The latest Bitcoin surge appears to have several drivers.
Reuters reported that Bitcoin rose about 6.4% on Friday, while crypto-linked stocks also jumped. Robinhood gained 13.7%, Coinbase climbed 8.2%, and Strategy, the major corporate Bitcoin holder, advanced 6%.
Analysts have also pointed to short-covering after weeks of relatively narrow Bitcoin trading. When traders who had bet against an asset rush to close those positions as prices rise, their buying can accelerate an existing rally.
Another factor is renewed optimism surrounding U.S. cryptocurrency regulation.
President Donald Trump has urged lawmakers to advance the CLARITY Act, legislation designed to establish clearer rules for digital assets and help determine how cryptocurrencies are classified and regulated. The bill remains politically contested, however, meaning regulatory uncertainty has not disappeared.
Wall Street also bounced—but the week was still painful
The Bitcoin rally coincided with a rebound on Wall Street.
On Friday, the Dow Jones Industrial Average rose 0.98%, the S&P 500 gained 0.43%, and the Nasdaq Composite advanced 0.44%.
Still, the gains did not erase the week’s losses.
The S&P 500 fell 1.43% for the week, while the Nasdaq dropped 2.05% and the Dow declined 0.85%. The S&P 500 and Nasdaq also ended their three-week winning streaks.
That contrast matters: Friday’s rebound does not necessarily mean the broader market has returned to a stable risk-on environment.
The bond market remains the biggest warning sign
The Treasury’s intervention was designed to improve liquidity in longer-dated government debt, but analysts remain skeptical about how much it can accomplish by itself.
Reuters reported that the U.S. government’s debt has surpassed $40 trillion, while interest costs are running at roughly $1.2 trillion annually. At the same time, the federal budget deficit remains above 6% of GDP.
Those structural pressures are not solved simply by buying back bonds.
Analysts cited by Philstar also warned that the increased buybacks are relatively small compared with the enormous size of the Treasury market and do not directly address the underlying forces pushing long-term yields higher.
That is why investors are treating the Bitcoin rally with both enthusiasm and caution.
Oil and geopolitical tensions add another layer of uncertainty
Markets are also dealing with rising oil prices and continued uncertainty surrounding the conflict involving Iran and the Strait of Hormuz.
Reuters reported that Brent crude gained more than 6% for the week, while U.S. crude rose more than 5%. Higher energy prices could intensify inflationary pressure and complicate the Federal Reserve’s interest-rate decisions.
The combination of higher oil prices, elevated bond yields and geopolitical uncertainty could therefore remain a major risk for both stocks and cryptocurrencies.
At the same time, the weaker U.S. dollar has helped strengthen the appeal of alternative assets. Reuters reported that Bitcoin was on track for a roughly 20% weekly gain, potentially its strongest weekly performance in about two and a half years.
What happens next could be more important than Friday’s rally
Bitcoin’s move above $77,000 is significant, but investors may be watching the bond market even more closely.
If Treasury intervention succeeds in keeping long-term yields under control while inflation remains manageable, risk assets such as stocks and cryptocurrencies could receive additional support.
But if yields resume their climb, oil prices remain elevated and inflation expectations worsen, the recent rally could face another test.
The next major catalysts include upcoming U.S. inflation data, Federal Reserve Chair Kevin Warsh’s appearance at the Jackson Hole economic symposium, and earnings from AI-chip giant Nvidia.
For now, Bitcoin has reclaimed the spotlight.
The bigger question is whether this is the beginning of a sustained crypto comeback—or simply a powerful rebound before another market test.
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