Bitcoin moved above $70,000 for the first time in more than two months, showing that more investors are buying the cryptocurrency again. Bitcoin rose more than 3% to above $71,500, its highest level since June 1. It was trading around $71,936, up more than 3.5% in the past 24 hours. Bitcoin is also about 15% higher since Monday.
US Treasury move helps Bitcoin rally
One major reason behind the Bitcoin rally was a move by the US Treasury to increase its purchases of long-term US government bonds. US Treasury Secretary Scott Bessent said the US would at least double its buybacks of longer-term Treasury bonds.
The announcement pushed US Treasury yields lower and sent the US dollar to its lowest level in three months, Bloomberg reported. Lower bond yields and a weaker US dollar can make riskier assets such as Bitcoin more attractive to investors.
Why lower yields matter for Bitcoin
When Treasury yields fall, investors may look for better returns in riskier assets. Bitcoin can benefit from this shift because it is viewed as a risk asset. “When yields drop and the dollar weakens, risk assets tend to rally,” said Jeff Mei, chief operating officer at BTSE, according to Yahoo Finance. Mei added that Bitcoin had already moved higher after the Treasury announcement.
