Bitcoin surged on U.S. fiscal worries and neared $80,000 on the 23rd. CoinPost said bitcoin’s price started the week in the high $60,000s, jumped into the $70,000s and rose to around $77,000 to $78,000 midweek.

The trigger for the bigger gain was U.S. Treasury Secretary Scott Bessent’s comments about expanding the size of long-term Treasury purchases. Bessent said the amount would be raised from $2 billion to at least $4 billion. Bitcoin then jumped quickly to around $78,000, accompanied by a short squeeze.

U.S. long-term yields later rebounded, but the market’s fiscal worries did not ease. Bitcoin rose further after Bessent suggested the purchase amount could exceed $4 billion.

The market also focused on the background to the measure. While the long-term purchases appear to be a duration adjustment that buys long-term Treasuries using funds from the runoff of short-term Treasuries, the market sees it as a response to an expanded fiscal deficit and the burden of interest costs. Attention also centred on the fact that the policy came just days after the 30-year U.S. Treasury yield rose to around a 19-year high on the 17th.

Bitbank analyst Yuya Hasegawa (하세가와 유야) said U.S. fiscal worries worked favourably for bitcoin. He said bitcoin rose on its own even as U.S. stocks were weak, and almost recovered the decline seen in June.

U.S. quarterly gross domestic product growth and the July personal consumption expenditures (PCE) deflator are due next week. Some also expect that profit-taking selling could emerge if the economy’s resilience or a reacceleration in inflation is confirmed.