Ether jumped approximately 18% to $2,250 while Bitcoin rose above $69,000 during a broad cryptocurrency rally on Thursday [1], [2].
The surge indicates a shift in market sentiment tied to U.S. government fiscal policy. When the Treasury adjusts bond buybacks, it can trigger volatility in high-risk assets like digital currencies.
The rally followed a decision by the U.S. Treasury to double its bond buybacks [1], [2]. This move significantly impacted traders who had bet against the market. Approximately $1.4 billion of short positions were wiped out as prices climbed [1].
Ether saw the most pronounced gains among the major assets. While CoinDesk reported an 18% jump [1], Analytics Insight said the gain was 17.74% over the previous day [2]. The asset reached a price of $2,250 [1].
Bitcoin also experienced a strong upward move. Reports on the exact peak varied slightly between sources; CoinDesk said it topped $69,000 [1], while Analytics Insight said the price climbed to $69,551 [2].
Market analysts said that the Treasury's actions provided the necessary catalyst for the rally. The elimination of short positions often creates a feedback loop, known as a short squeeze, that pushes prices even higher as traders are forced to buy back assets to cover their losses [1].
This activity occurred across global cryptocurrency markets, reflecting a widespread appetite for risk following the Treasury's announcement [1], [2].
“Ether jumped approximately 18% to $2,250”
The correlation between U.S. Treasury bond buybacks and cryptocurrency price action highlights the sensitivity of digital assets to liquidity shifts in traditional finance. By doubling buybacks, the Treasury effectively altered the risk appetite of institutional investors, triggering a massive liquidation of short positions that accelerated the price rally for both Bitcoin and Ether.
