Cryptocurrency markets experienced significant upward movement after weeks of sideways trading, culminating in major gains for Bitcoin and several altcoins.
Last Friday, Bitcoin was struggling near $62,500 following a ten-day low, despite positive US CPI data earlier in the week. Prices held near $63,000 over the weekend before beginning a gradual climb on Monday and Tuesday.
On Wednesday, market momentum shifted significantly when the US Treasury Department announced it would double the maximum size of liquidity-support buybacks for long-dated government debt from $2 billion to at least $4 billion. Minutes after the announcement, Bitcoin initiated a major upward surge, driving the asset to $70,000 within hours and liquidating over $1 billion in short positions in 60 minutes. Following corrections and further advances, Bitcoin climbed to nearly $80,000 for the first time in over three months, ultimately pausing around $77,000 for a weekly gain of 23.6%.
Altcoins recorded strong performances alongside Bitcoin. Ethereum touched $2,400 following a 30% pump, while XRP surged 40% from $1.00 support to $1.40, supported by whale accumulation of nearly 400 million tokens. Other prominent gainers included SOL, HYPE, ZEC, DOGE, LINK, ADA, and BCH, contributing to an overall market capitalization increase of more than $400 billion since Wednesday.
In industry developments:
- Strategy refrained from buying additional Bitcoin while also pausing its offloads.
- South Korea blocked domestic access to the predictions platform Polymarket, citing regulations against illegal gambling.
- US President Trump hosted crypto firm leaders at the White House on Wednesday, advocating for the CLARITY Act and noting administration discussions regarding potential purchases of digital assets.
- Anthony Scaramucci commented on future price potential, stating that Bitcoin could return to six-digit territory by the 2028 halving.
