Cryptocurrencies
The price of Bitcoin rose Wednesday evening to its highest level since early June. This was due to falling yields on U.S. Treasury bonds and U.S. President Donald Trump. (File photo)
Keystone
The price of Bitcoin rose Wednesday evening to its highest level since early June. This was driven by falling yields on U.S. Treasury bonds and U.S. President Donald Trump.
Today at 10:41Trump reiterated his commitment to driving the U.S. forward in the crypto world, causing the value of the “leading cryptocurrency” to skyrocket. On Thursday morning, one Bitcoin was trading at over 71,000 U.S. dollars. Just 24 hours earlier, the blockchain-based currency had been trading for less than $65,000.
Market observers view the gain of more than 11 percent as a reaction by investors to an announcement by the U.S. Treasury. The Treasury had unexpectedly announced its intention to significantly increase its purchases of long-term bonds.
Lower bond yields benefit Bitcoin
The U.S. bond market recently experienced a sell-off of sorts, which drove yields on 30-year bonds to their highest level since 2007. The Treasury Department’s measure is intended to allay market concerns centered on rising inflation, the consequences of the war in Iran, rapidly rising government debt, and the capital needs of major AI companies.
The easing of pressure in the U.S. bond market was reflected, among other things, in rising gold and Bitcoin prices. This is because lower bond yields make Bitcoin and other cryptocurrencies appear more attractive to investors. If the U.S. were to start printing money on a large scale again, this would likely benefit the “leading cryptocurrency,” according to market analysts.
The U.S. Aims for Clear Regulation
However, the recent surge is also due to political announcements. According to Trump, the U.S. is finally set to become a crypto superpower.
At a crypto summit at the White House, Trump promised to give digital assets a key role in the future. This includes the swift passage by Congress of the “Clarity Act,” a set of crypto regulations. In addition, the president reiterated that the U.S. is considering purchasing a “substantial” amount of Bitcoin to build a government Bitcoin reserve.
The euphoria also spread to other cryptocurrencies. For example, Ethereum—the second-largest blockchain currency by market capitalization—rose by nearly 20 percent compared to the previous day. Hyperliquid, another cryptocurrency at the center of the new regulatory efforts, even rose by 24 percent.