Investing.com — Bitcoin traded slightly above $77,000 on Saturday, having surrendered some earlier gains after approaching $80,000, as traders assessed whether a Treasury-driven short squeeze marked the start of a lasting recovery, according to CoinDesk and CNBC.
The cryptocurrency climbed as high as $79,200 on Friday before pulling back toward $77,500. The rally accelerated after the U.S. Treasury said it would double buybacks of longer-dated government bonds to $4 billion per operation from $2 billion.
Bitcoin was trading down 1.115 at $77,025.1 as of 05:50 ET (09:50 GMT).
The announcement helped push the 30-year Treasury yield down from a 19-year high of 5.34% to about 5.19%, easing pressure on risk assets. High government bond yields compete with Bitcoin for capital since the cryptocurrency does not produce interest income.
Treasury buybacks are designed to improve liquidity in older securities and manage the composition of government debt. Analysts stressed that the programme is not quantitative easing, which involves the Federal Reserve creating reserves to purchase assets.
The decline in yields triggered a rapid unwinding of bearish crypto positions. Roughly $4 billion of short positions were liquidated on Thursday and Friday as Bitcoin broke above resistance levels and its 200-day moving average near $69,000.
Heavy positioning amplified the rally. Binance recorded $1.26 billion of Bitcoin futures trading during one 60-second period, according to data cited by CoinDesk, while funding rates reached exchange maximums as traders shifted toward leveraged long positions.
Spot demand also improved, with U.S. Bitcoin exchange-traded funds attracting about $650 million in net inflows. Sentiment received further support from renewed White House pressure for Congress to advance the CLARITY Act, which would establish a clearer regulatory structure for digital assets.
Analysts remained divided over whether the move confirmed the end of the bear market. Bullish observers said short squeezes, large upward candles and breaks above major technical levels often accompany market bottoms.
More cautious analysts argued that Bitcoin needs sustained ETF inflows and broader monetary easing to maintain momentum. They warned that another rise in Treasury yields could challenge the breakout and make leveraged long positions expensive.
Traders are watching $80,000 as the next major resistance level. The 200-day moving average near $69,000 now represents an important test of longer-term support.
