Why bitcoin prices are suddenly rallying big-time

In a sudden surge, the price of bitcoin has surged by around 18% in the last two days, reaching over $77,600 as of this report. This significant increase follows a long period where bitcoin prices had not surpassed $70,000 since late May. The driving force behind this rally has been the U.S. Treasury's decision to double the maximum size of its long-term bond buyback operations from $2 billion to $4 billion per session.

This move targets the 10-year, 20-year, and 30-year Treasury sectors, aiming to stabilize falling bond prices and reduce borrowing costs for consumers and businesses. Analyst Gautam Chhugani notes that bitcoin historically reacts positively to liquidity expansion, which seems to be the case as the Treasury's intervention injects liquidity into the market.

Additionally, a White House meeting with President Trump and leaders from leading digital asset companies like Coinbase and Robinhood has bolstered investor confidence. Trump urged Congress to pass the Clarity Act, which would provide clarity and support for the crypto industry. Without this legislation, the industry is expected to see accelerated rule-making to support new products and continued federal support for prediction markets.