Bitcoin (BTC) has returned to levels above $70,000 for the first time since June 2. This breakout came after 78 days of consolidation and was made possible amid loud statements by former US President Donald Trump about potential government purchases of cryptocurrency.
Today, the BTC price briefly tested the $70,000 mark on Binance and $70,022 on Coinbase. Just two days ago, the price was below $64,000, and in early July—around $62,000. Such a sharp jump led to significant losses for bears: in one hour, traders holding short positions lost $1.23 billion. A major player on Hyperliquid closed a short of 1,800 BTC, costing them approximately $117 million in losses.
What drove the market?
The first impulse came from Washington. The US Treasury Department announced plans to double the volume of long-term bond buybacks—at least $4 billion per operation. The yield on 30-year government bonds fell from a high of 5.337%, which was the highest level since 2007. Cheaper long-term money traditionally supports assets that do not generate direct income, including bitcoin.
The second impulse came from Trump. When asked about the possibility of the administration accumulating a "significant" amount of bitcoin, he did not deny such a prospect. Moreover, he directly linked this idea to strengthening the dollar, stating: "It's being discussed. It turned out to be very, very good for the dollar. If there are specific proposals, I will definitely consider them."
It is important to note that in March 2025, Trump already created a Strategic Bitcoin Reserve, but only confiscated coins go into it, not those purchased on the open market. A large purchase on the market would be an unprecedented step in history.
The Federal Reserve also did not stand in the way. The July meeting minutes indicated that inflation "remains elevated," but no hawkish tone was heard beyond the three known opponents. The probability of a rate hike in September dropped to 34%, and the dollar weakened.
This combination is strong: falling yields, a calm Fed, and a president contemplating buying bitcoin. However, even at $70,000, BTC is trading roughly 44% below its all-time high of $126,080, set in October last year. Notably, bitcoin is breaking this year's trend where gold outpaced it: gold gained 33%, while BTC fell 46%.
My analysis: The breakout above $70,000 is a significant technical signal, but macroeconomic policy remains the key factor. If the Fed continues to soften its rhetoric and the Trump administration makes even a hint of real purchases, we could see sustained movement toward new local highs. However, without concrete government action, this level may turn out to be just a temporary stop on the way to a deeper correction. Watch the market's reaction over the next 48 hours—it will show how much of the politicians' words are backed by real money.