BTC tops USD 70k as a Treasury move to ease bond-market strain sparks a rush into risk assets

BTC is finally experiencing a rally after months of decline, with the crypto asset jumping as much as 14% in 24 hours to USD 72k — its highest level since June — after the US Treasury said it would at least double purchases of longer-dated government bonds. Meanwhile, ETH rose 20%, XRP rose 15%, and Hyperliquid’s hype token rose 25%. More than USD 1 bn in BTC short positions were liquidated in about an hour, part of a broader USD 2.7 bn short-covering wave, according to data from Coinglass picked up by Bloomberg.

What’s happening? The Treasury’s maximum liquidity-support buybacks of 10- to 30-year government bonds will rise from USD 2 bn to at least USD 4 bn per operation. The move comes after the US paid its highest borrowing costs on 30-year bonds since 2001, while a 10-year auction this week fetched the highest yields since 2007, according to the Financial Times.

Markets read that combination as a liquidity signal, and cheaper long-term money plus a softer USD are exactly the conditions that make scarce, fixed-supply assets — BTC, gold — more attractive relative to cash. Gold also jumped 2.7% the same day.

BTC got extra torque from positioning: The market had built up a near-record short base, so every leg higher forced more shorts to cover — which is how a Treasury operation turned into the biggest liquidation wave since 2021.

BACKGROUND- Behind the sell-off is a very large number: US gross federal debt has crossed USD 40 tn for the first time after adding USD 3 tn over the past year — its fastest increase outside the pandemic era. Debt held by the public now exceeds USD 32 tn, roughly the size of the US economy, while federal interest costs have surpassed defense spending.

BTC bulls see an opening: This is “exactly the type of thing BTC loves,” Standard Chartered’s Geoffrey Kendrick said, arguing investors should position for BTC to reach USD 100k by year-end.

The upswing was helped by a sit-down President Donald Trump had with crypto executives at the White House, which followed a proposal from the Securities and Exchange Commission to exempt certain digital assets from securities registration statements as the regulator moves ahead with its stalled crypto agenda.

THE CLOSING BELL: TADAWUL-

The TASI rose 0.3% on Thursday on turnover of SAR 5.1 bn. The index is up 4.4% YTD.

In the green: Almasane Alkobra Mining (+6.0%), AFG International (+5.8%), and Al Hassan Ghazi Ibrahim Shaker (+5.5%).

In the red: Wataniya Ins. (-3.1%), Walaa Cooperative Ins. (-2.8%), and Mutakamela Ins. (-2.8%).

THE CLOSING BELL: NOMU-

The NomuC remained flat on Thursday on turnover of SAR 15.1 mn. The index is down 7.4% YTD.

In the green: MSGA Investment (+8.3%), Shalfa Facilities Management (+7.5%), and Anmat Technology for Trading (+6.4%).

In the red: Alfakhera for Mens Tailoring (-12.0%), Riyal Investment and Development (-9.7%), and Abdulaziz Bin Ahmed Altwijri Trading (-8.8%).