- Expanded Treasury buybacks, strong spot ETF demand and a weaker dollar combined to give crypto markets a powerful boost.
- Bitcoin jumped 23.6% last week, recording its second-largest weekly gain since early 2021.
- BTC climbed from roughly $62,000 to nearly $79,500 before retreating and finishing around $77,000. The weekly increase was Bitcoin’s strongest since the rally that followed the Silicon Valley Bank crisis in March 2023.
- Ether outperformed Bitcoin, rising 31.3% from below $1,900 to more than $2,520 before settling back below $2,500.
- The breakout followed months of relatively subdued market activity. Crypto prices had largely traded within a range, volatility had fallen sharply and investors had continued accumulating.
- The extended period of consolidation left the market vulnerable to a sharp move once a meaningful catalyst emerged. That catalyst came when Treasury Secretary Scott Bessent announced an expansion of Treasury bond buybacks, helping push bond yields and the dollar lower while improving the backdrop for risk assets.
- U.S. spot Bitcoin ETFs added significant buying pressure, attracting $1.92 billion in net inflows over the week. It was their largest weekly inflow since Oct. 10, when Bitcoin was trading close to its record high of $126,000. Ether ETFs brought in another $697 million, marking their strongest weekly inflow since early October 2025.
- Both Bitcoin and Ether moved above their 200-day simple moving averages, a widely followed indicator of longer-term market direction. Their 50-day averages are also turning upward, raising the possibility of a golden cross, in which the 50-day average rises above the 200-day average and is generally viewed as a bullish technical signal.
- The surge has also brought the “debasement trade” back into focus. The strategy involves favoring scarce assets such as Bitcoin and gold as a hedge against weakening fiat purchasing power resulting from higher debt, monetary expansion and persistent inflation.
- Gold has joined the move, rising above $4,600 after gaining 15% over the past month. It is also trading above its 200-day moving average of $4,504.
- At the same time, the U.S. Dollar Index, or DXY, has dropped to 98.9, slipping below its 200-day average of 99.1.
- A softer dollar combined with lower yields has created a favorable environment for crypto, gold and other risk assets, helping reinforce the recent market breakout.
Bitcoin Surges in Major Comeback With Second-Strongest Week Since 2021
