For the first time since early June, bitcoin (BTC) has crossed the psychologically important mark of $70,000. It took the market 78 days to recover this level. The key catalyst was Donald Trump's statements that the US government is considering the possibility of acquiring a "significant" volume of the first cryptocurrency. This statement instantly changed investor sentiment.
What pushed the price up
Two days before the surge, the asset's price was below $64,000, and in early July it was even fluctuating around $62,000. The sharp jump led to massive liquidation of short positions: in one hour, traders lost about $1.23 billion. On the Hyperliquid platform, one major player closed a short position of 1,800 BTC, recording a loss of approximately $117 million.
The first impulse came from the macroeconomic side. The US Treasury Department announced a doubling of long-term bond buyback volumes—at least $4 billion per operation. The yield on 30-year government bonds fell from the high of 5.337% recorded earlier this year. Lower yields make non-yielding assets such as bitcoin more attractive to investors.
The political factor and the Fed's stance
The second, and more powerful, impulse came from Washington. When asked about the possible accumulation of bitcoin by the administration, the president 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."
Let me remind you that in March 2025, a Strategic Bitcoin Reserve was created, which is replenished exclusively with confiscated coins. If the government begins buying BTC on the open market, it would be an unprecedented step in history.
The Federal Reserve is also not creating obstacles. The July meeting minutes note that inflation "remains elevated," but apart from the three known opponents, no hawks have emerged. The probability of a rate hike in September has dropped to 34%, and the dollar has weakened.
The combination of factors—falling yields, a calm Fed stance, and a president contemplating buying bitcoin—is extremely powerful. However, it is worth remembering that even at the $70,000 level, BTC is trading 44% below the all-time high of $126,080 set in October last year. Whether "words" can hold the price above $70,000 by morning remains to be seen. In my view, the market is currently pricing in not so much current purchases as the very possibility of a paradigm shift in the state's attitude toward crypto assets. This could become a more significant driver than any technical level.