Bitcoin is experiencing its best quarterly performance since late 2024, with the cryptocurrency surging 40% over the past three months. The price has climbed close to 30% since August 19, when the U.S. Treasury announced plans to more than double the size of its government debt repurchases.
Bitcoin recently traded near $83,698, up 6% over the past 30 days. The asset's recent strength comes as investors reassess holdings amid broader economic conditions, including elevated bond yields that have reached levels not seen since the 2000s.
Economic Tailwinds
Lower long-term yields tend to reduce the opportunity cost of holding non-yielding assets like bitcoin and gold, while generally supporting risk-on market sentiment. Bitcoin has also benefited as the dollar weakens, with investors seeking assets as a hedge against currency debasement. This dynamic has intensified following total U.S. debt topping $40 trillion for the first time in July.
Technical Signals
Bitcoin crossed above its 365-day moving average, a technical indicator historically associated with the start of bull markets in previous cycles. The cryptocurrency reached an all-time high of $126,080 in October before declining by more than 50%, though this remains the shallowest bear market in its history.
Bitcoin has recovered despite the Federal Reserve raising interest rates and lawmakers blocking the Clarity Act, landmark crypto legislation.
