Bitcoin Rockets Past $77,000 as Treasury Buybacks and ETF Inflows Fuel Historic US Crypto Rally

Bitcoin Rockets Past $77,000 as Treasury Buybacks and ETF Inflows Fuel Historic US Crypto Rally

Bitcoin capped one of its strongest weeks in years on Friday, trading near $77,500 and pushing toward its best weekly performance in more than three years. The rally, which began Wednesday, has carried the largest cryptocurrency up roughly 20% to 25% since Monday, reversing months of sideways trading that had kept the token locked between $62,000 and $66,000 for weeks.

Treasury Intervention and Clarity Act Momentum Spark the Rally

The catalyst behind the move was a surprise announcement from the US Treasury under Secretary Scott Bessent, who revealed plans to increase bond buybacks in an effort to bring down long-term borrowing costs. The move boosted market liquidity and pushed investors back toward riskier assets, including cryptocurrencies and equities alike.

Momentum accelerated after President Donald Trump met with crypto industry leaders and publicly urged the Senate to advance the Clarity Act, a long-stalled bill designed to establish clearer market-structure rules for digital assets. While the legislation still faces an uncertain path to passage, the renewed White House push was enough to reignite investor confidence across the sector.

The combination of macro and policy tailwinds triggered a wave of forced short covering, with analysts estimating roughly $2.7 billion in bearish crypto positions liquidated as the price broke through key resistance levels. Traders who had built up short positions during Bitcoin's prolonged slump — the token remains well below its January 2026 high near $94,800 and its October 2025 all-time high above $126,000 — were caught off guard by the speed of the reversal.

ETF Inflows and Crypto Stocks Extend the Rally Into a Second Day

The rally has been reinforced by strong demand for US spot Bitcoin and Ether ETFs, which pulled in roughly $800 million combined as inflows accelerated for a second consecutive day. That followed a $606 million single-day haul earlier in the week, underscoring how quickly institutional appetite has returned alongside retail momentum.

Crypto-linked equities rallied in tandem. Coinbase and Circle each advanced more than 9%, Robinhood jumped over 12%, Strategy — the largest corporate holder of Bitcoin — rose as much as 10%, and Galaxy Digital gained around 5%. Strategy's bitcoin treasury has swung back into a roughly $1.4 billion unrealized profit as prices recovered.

Market watchers remain divided on what comes next. Some analysts argue the rally reflects a genuine shift in the macro backdrop and Washington's posture toward digital assets, while others caution that thinner weekend liquidity could make the push toward $80,000 a difficult test. Bitcoin has historically struggled in September, its weakest month on average, leaving traders to watch closely whether this week's gains can hold into the fall.