- Bitcoin rose by more than 4 per cent in early Asia trading Friday, continuing a tear that began Wednesday after the US Treasury revealed plans to rein in long-term bond yields.
- The original cryptocurrency climbed as high as $75,740 as of 10 a.m. in Singapore.
- Bitcoin is now up almost 20 per cent this week.
- The market exuberance builds on gains over the past two days after Treasury Secretary Scott Bessent announced the department would double the size of its bond buybacks.
- According to Matthew Sigel, head of digital assets research at VanEck, the price reaction isn't about the US Clarity Act but about the US Treasury's actions reigniting fears of fiscal dominance.
Bitcoin's price surged past $75,000 in early Asia trading, marking a significant increase of over 4% as of 10 a.m. in Singapore. This rally, which has seen the cryptocurrency rise nearly 20% this week, follows the US Treasury's announcement to double its bond buybacks, a move that has reignited fears of fiscal dominance.2
The excitement in the crypto market is not solely attributed to the Treasury's actions. President Donald Trump met with key industry leaders, including executives from Coinbase Global Inc. and Payward Inc., to discuss the stalled Clarity Act, a proposed crypto market structure bill. Trump's advocacy for the bill has added to the optimism surrounding the cryptocurrency sector.
However, analysts caution that the current price movements are more closely linked to the Treasury's bond buyback strategy than to legislative developments. Matthew Sigel, head of digital assets research at VanEck, noted, “This price reaction isn’t about the US Clarity Act... This is about what the US Treasury has done, which is reigniting fears of fiscal dominance.”5
As the market continues to react to these developments, investors are closely monitoring the implications of the Treasury's fiscal policies on the broader economic landscape and the cryptocurrency market's future.
“The surge follows Treasury Secretary Scott Bessent's announcement to double bond buybacks, with Bitcoin up nearly 20% this week. VanEck's Matthew Sigel attributes the move to fiscal dominance fears, not the US Clarity Act.”
