Bitcoin (BTC) And Gold Shed Their Shackles As Macroeconomic Tailwinds Lift Prices

Bitcoin (BTC) broke out of its recent slump last week, reclaiming key levels after getting a substantial boost from the bond market and developments in Washington. Gold benefited from similar conditions, rising above $4,600 on Friday as investor interest returned.

BTC is trading around $77,184, up nearly 22% over the past seven days, while gold rose about 5% in the same period, marking a third consecutive weekly gain, and reaching a three-month high.

Bitcoin And Gold Get Major Lift

Bitcoin (BTC) broke out of its trading range last week, surging nearly 22% as a massive short squeeze, institutional interest in Bitcoin ETFs, and the US Treasury’s announcement that it would double its bond-buy operations from $2 billion to $4 billion. The short squeeze hit traders who bet against BTC, triggering a wave of liquidations that propelled the price higher. Spot Bitcoin ETFs saw renewed momentum and registered their strongest week in 10 months, recording $1.92 billion in net inflows, according to CoinGlass data. The US Treasury’s announcement lowered 30-year bond yields, which hit 5.34% prior to the decision, the highest since 2007. A renewed political push to pass the CLARITY Act has also buoyed investor sentiment.

On the other hand, gold crossed $5,300 in January but fell toward $4,000 by June as investors pivoted to interest-bearing investments thanks to rising interest rates. The bullion is back above $4,600, recording a third consecutive weekly gain, and is currently trading around $4,650, according to Investing.com.

Crypto Gets A Policy Boost

President Trump’s meeting with top crypto industry executives and subsequent calls on Congress to pass the CLARITY Act increased optimism about greater regulatory clarity, helping boost investor sentiment. Commodity Futures Trading Commission (CFTC) Chair Mike Selig added that he would “use every tool available” to advance President Trump’s crypto agenda. The CFTC is meeting on Thursday to explore whether it can use its existing authority to ease crypto rules. The United States Securities and Exchange Commission (SEC) has already announced the implementation of the “Regulation Crypto Assets” framework. The framework introduces tailored exemptions and a provisional safe harbor, preventing specific crypto assets from being classified as securities.

Bitcoin Short Squeeze Another Catalyst

Bitcoin (BTC) registered one of its strongest rallies in recent memory last week, reclaiming key levels after trading in the $62,000 and $67,000 range for nearly two months. Short traders seized the moment, placing bets against a rally. However, the US Treasury’s announcement fueled BTC’s surge past the $70,000 mark, triggering a wave of liquidations as traders closed their short positions. This added more fuel to the rally, with over $4 billion in short positions liquidated by Friday, according to CoinGlass data.

BTC started the previous week in positive territory, rising 2.62% on Monday and closing at $64,484. The price registered a marginal increase on Tuesday before rallying more than 7% on Wednesday and closing at $69,300. Upward momentum persisted on Thursday as BTC crossed $70,000 and settled at $73,011, up 5.36%. Bullish sentiment intensified on Friday as the price rallied more than 7%, reaching an intraday high of $79,500 before settling at $78,325. Despite the overwhelming positive sentiment, BTC could not cross $80,000 and lost momentum over the weekend.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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