Bitcoin holds above $77,000 after Treasury-fuelled short squeeze

Bitcoin has held above $77,000 following a Treasury-fuelled short squeeze, according to reports from Investing.com, CoinDesk, and CNBC. The cryptocurrency surged to a high of $79,200 on Friday before settling near $77,500, driven by the U.S. Treasury's decision to double buybacks of longer-dated government bonds to $4 billion per operation.

This move helped ease pressure on risk assets, as the 30-year Treasury yield dropped from a 19-year high of 5.34% to around 5.19%. Analysts noted that the Treasury buybacks are not quantitative easing, but their impact on liquidity and capital allocation has been significant, with Bitcoin's decline in yields triggering a rapid unwinding of bearish crypto positions.

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