Cryptocurrency and traditional equity markets experienced upward momentum on Thursday following the U.S. Treasury Department's announcement to significantly increase its bond repurchase program. The market movement triggered widespread digital asset appreciation and wiped out substantial short positions.
Bitcoin broke through the $69,100 level, registering an 8% daily increase and a 9% weekly advance. During overnight trading, the leading cryptocurrency briefly approached $69,900 before experiencing a modest pullback, representing a move of more than $5,700 from Wednesday's low near $64,100. Ether posted the strongest weekly performance among leading digital currencies, surging approximately 18% over a 24-hour period to climb above $2,250 and extending its weekly gain to roughly 20%.
The market rally was catalyzed by Treasury Secretary Scott Bessent's announcement that the U.S. Treasury will double the size of long-term government debt buybacks, increasing repurchases from $2 billion to at least $4 billion to provide liquidity. Following the announcement, the benchmark 10-year yield declined to about 4.63%, and the 30-year rate dropped to 5.18%.
The sudden price surge resulted in a short squeeze that eliminated approximately $1.4 billion in bearish positions within a four-hour window as short sellers exited their positions.
Other digital assets also recorded notable gains. Hyperliquid's HYPE token rose over 19% to approach $70, Solana advanced more than 10% to reach $84.50, and XRP gained 10% to hit $1.09, reclaiming the $1 threshold. Dogecoin added roughly 8% in gains, while BNB rose 3.5% and Tron remained essentially unchanged.
Market optimism was further supported by a White House meeting where President Donald Trump met with executives from Coinbase, Gemini, Ripple, and Chainlink Labs, urging Congress to advance the Digital Asset Market Clarity Act.
Meanwhile, major U.S. equity indices recorded slight advances, with the Dow Jones Industrial Average, S&P 500, and Nasdaq all gaining roughly 0.2%. Healthcare, consumer discretionary, and materials sectors showed relative strength, while technology and industrial segments lagged.
