Today a landmark event took place on the market: bitcoin (BTC) returned to the $70,000 mark for the first time since early June. This level was reached after 78 days of consolidation, and the momentum for such a surge was driven by several factors at once — from macroeconomic signals to high-profile political statements.
What preceded the breakout
The BTC price briefly tested the $70,000 level, while just two days ago the asset was trading below $64,000, and in early July — around $62,000. Such a sharp jump led to serious losses for bears: within one hour, short positions worth $1.23 billion were liquidated. On Hyperliquid, one major player closed a short of 1,800 BTC, recording a loss of approximately $117 million.
The first push came from Washington. The U.S. Treasury Department announced its intention 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 had been recorded earlier and was the highest since 2007. Cheaper long-term money traditionally supports assets that generate no income, including bitcoin.
The political factor and the Fed's stance
The second impulse came from Donald 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 that he is discussing the possibility of purchasing "significant" amounts of BTC and cryptocurrencies, and also called on Congress to pass the CLARITY Act to maintain U.S. leadership in digital assets.
It is important to note that in March 2025, Trump already created a Strategic Bitcoin Reserve, but only confiscated coins go there, not those bought on the open market. If the government decides on a real purchase, this would become the first such precedent in history.
The Federal Reserve also did not stand in the way. In the July FOMC meeting minutes, inflation is still characterized as "elevated," but no hawkish signals were heard, apart from three known opponents. The probability of a rate hike in September dropped to 34%, and the dollar weakened.
This combination — falling yields, a calm Fed, and a president considering buying bitcoin — proves to be extremely powerful. At the time of writing, BTC was reaching $70,000 on Binance and $70,022 on Coinbase. Whether the asset holds its gained positions by morning will show how much real strength political statements have.
My comment: The breakout above $70,000 is not just a technical signal, but a shift in narrative. If earlier bitcoin lagged behind gold, which rose 33% over the year, while BTC fell 46%, now we are seeing a trend reversal. However, it is worth remembering: even at current levels, bitcoin is trading 44% below its all-time high of $126,080. The market is pricing in not only macroeconomics but also political will — and this could become the main driver until the end of the year.