Bitcoin is experiencing a memorable late-summer surge. Early Tuesday, the cryptocurrency broke above the $80,000 mark for the first time in 15 weeks. Over the past eight trading sessions, Bitcoin has climbed 28%, adding roughly $350 billion to its total market capitalization. In about a week's time, it has fully recovered all the losses accumulated over the previous three months.
Driven by this momentum, data shows that cryptocurrency-related stocks have moved sharply higher. Shares of Strategy (formerly MicroStrategy), led by Michael Saylor, have risen 36% over the past month; Circle is up 43%; Coinbase has gained 16%; and Robinhood has advanced 12%.
Over the last two weeks, the multiple catalysts fueling Bitcoin's rally have drawn significant market attention. Last week, the U.S. Treasury surprised financial markets by announcing it would raise the single-operation cap for its long-term bond buyback program from $2 billion to $4 billion. This intervention comes after benchmark U.S. Treasury yields spiked to 20-year highs, pressured by persistent inflation and energy price increases driven by geopolitical conflicts. The Treasury's move directly targets 10-year, 20-year, and 30-year maturities.
Treasury Secretary Scott Bessent stated he possesses a "large toolkit of policies" to continue addressing the upward trend in Treasury yields. The Treasury's secondary-market bond buybacks are designed to inject liquidity, halt falling bond prices, and ease the rising borrowing costs faced by consumers and corporations.
"Bitcoin is rising because the market's focus has shifted away from inflation and toward stimulus discussions, and this type of asset benefits from that," said Jim Bianco, president of Bianco Research, on a Yahoo Finance program. Additionally, a White House meeting last week, where President Trump met with representatives from leading crypto firms including Coinbase and Robinhood, further improved sentiment toward Bitcoin. Trump called on Congress to pass a "fair version" of the GENIUS Act and declared that the U.S. will maintain its status as the "undisputed leader" in Bitcoin and the broader cryptocurrency space.