Bitcoin (BTC) has surpassed the psychologically important $70,000 mark for the first time since early June. This surge, which took 78 days, was made possible by a confluence of several factors: signals from the U.S. administration, a softening of the Federal Reserve's rhetoric, and a shift in market sentiment.
The minutes of the Fed's July meeting came as no surprise, which in itself was a positive signal. However, the main catalyst was Donald Trump's statement that the U.S. government is considering the possibility of acquiring a "significant" amount of bitcoin. This news immediately impacted the market, triggering a sharp price spike.
How bitcoin returned to $70,000 after a 78-day hiatus
Just two days ago, the asset was trading below $64,000, and in early July, around $62,000. The sharp upward move led to the liquidation of bearish positions worth $1.23 billion in just one hour. One major player on the Hyperliquid platform closed a short position of 1,800 BTC, recording a loss of approximately $117 million.
The initial impetus came from Washington. The U.S. Treasury Department announced plans to double the volume of long-term bond buybacks—at least $4 billion per operation. Yields on 30-year government bonds fell from a high of 5.337%, which had been recorded for the first time since 2007. Cheaper long-term money traditionally supports assets that do not generate direct income, which includes bitcoin.
Notably, even at $70,000, bitcoin is trading roughly 44% below its all-time high of $126,080, set in October of last year. However, we are now witnessing a trend reversal: whereas gold was previously outpacing bitcoin confidently (+33% versus a 46% decline in BTC), the situation is now changing.
Trump does not rule out a major bitcoin purchase
When asked about the possible accumulation of a significant amount of bitcoin by the administration, Trump responded directly: "It's being discussed. It has turned out to be very, very good for the dollar. If there are concrete proposals, I will definitely consider them." These words fell on fertile ground.
Recall that in March 2025, Trump created the Strategic Bitcoin Reserve, but only confiscated coins were added to it, not those purchased on the market. A major purchase on the open market would be the first such precedent in history.
The Federal Reserve also did not stand in the way. The July minutes noted that inflation "remains elevated," but no hawkish tone was struck beyond the three known dissenters. The probability of a rate hike in September dropped to 34%, and the dollar weakened.
This combination of factors looks extremely compelling: falling yields, a calm Fed, and a president contemplating buying bitcoin. Whether the price holds above $70,000 by morning will show whether these words carry real weight in the market.
My take: Trump's statement is not just PR but a signal of a paradigm shift. If the U.S. actually begins buying bitcoin on the open market, it will fundamentally change the balance of supply and demand. However, it is worth remembering that such statements remain just words for now, and the market could correct if no concrete actions follow.