FT: Bitcoin is expected to have the best weekly performance in more than three years, and Bezent expands US bond repurchases to weaken the dollar
Comparative news, according to the Financial Times, after US Treasury Secretary Bezent announced the expansion of long-term US bond repurchases, market hedging and currency depreciation transactions heated up, and assets such as Bitcoin and gold rose sharply.
Bitcoin rose nearly 8% on Friday, with a cumulative increase of 24% this week. The price surpassed 78,000 US dollars, a new high since May this year, and is expected to record its best weekly performance in more than three years. Gold also performed strongly during the same period. It rose 1.5% to about 4,585 US dollars/ounce on Friday, with a cumulative increase of more than 13% in August, which is expected to be the biggest monthly increase since 1999.
Market participants believe that the core factor driving the current market is the expansion of the US Treasury's long-term treasury bond purchase plan. US Treasury Secretary Scott Bessent said earlier that he would at least double the scale of long-term US debt repurchases. The measure reduced the yield on 30-year US Treasury bonds in the short term, but it also raised concerns about the decline in the purchasing power of the US dollar, and the dollar index continued to weaken thereafter.
Jefferies chief European economist Mohit Kumar said that gold and crypto assets rose sharply after Bezent announced related measures, further supporting expectations of a weaker dollar.
This rise has reignited currency depreciation transactions (Debasement Trade), where investors hedge against the risk of declining fiat currency purchasing power by allocating assets such as gold and bitcoin. Previously, the conflict between the US and Iran led to a rise in inflationary pressure, which once interrupted the logic of this transaction, but now the market has returned to expectations of liquidity easing.
In addition to Bitcoin, Ethereum, Solana, and XRP have risen 29%, 17%, and 40%, respectively, over the past week. Previously, the crypto market continued to be sluggish since the fall of last year, and Bitcoin's biggest decline in the past year once reached 31%.
Meanwhile, crypto-related stocks rose at the same time: Coinbase is up 16% this week, stablecoin issuer Circle is up 17%, and Bitcoin holding company Strategy is up 21%.
Analysts pointed out that Bitcoin's rapid rise triggered a squeeze on bears, and large numbers of short positions were forced to close, further driving up the price. Furthermore, US President Trump's meeting with regulators and heads of crypto companies this week and the introduction of new crypto regulation proposals by the US Securities and Exchange Commission (SEC) were also viewed by the market as good for the industry.
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