Bitcoin has just wiped out three months of losses in 1 week

Bitcoin (BTC-USD) has surged 28% in just eight days, recovering three months of losses in just one week. The cryptocurrency broke through $80,000 for the first time in 15 weeks, adding approximately $350 billion to its total market cap. This boom has also benefited crypto-linked stocks, with shares of Michael Saylor's Strategy (MSTR) up 36% in the past month, Circle (CRCL) up 43%, Coinbase (COIN) up 16%, and Robinhood (HOOD) up 12%.

The surge in Bitcoin prices has been catalyzed by recent US Treasury actions, which announced a doubling of its long-term bond buyback operations from $2 billion to $4 billion per session. Treasury Secretary Scott Bessent stated that the move aims to inject liquidity, stabilize falling bond prices, and reduce borrowing costs. Bianco Research president Jim Bianco suggested that these actions have emboldened Bitcoin bulls to expect more liquidity, which in turn has led to higher digital asset prices.

Additionally, a White House meeting last week involving President Trump and top digital asset players at Coinbase and Robinhood appeared to have further boosted Bitcoin's sentiment.