Bitcoin Jumps $10,000 in a Week as Shorts Lose $3 Billion

Bitcoin rallied about $10,000 in a single week, climbing above $77,000 for the first time since May and briefly reaching $79,500. The surge coincided with the U.S. Treasury’s decision to double the size of its long‑dated bond buyback operations.

Treasury Buyback Expansion

The Treasury announced it would increase the maximum amount per buyback operation from $2 billion to $4 billion, covering 10‑ to 30‑year bonds through the current refunding quarter ending November 4. The move pushed the 10‑year yield down about six basis points to 4.647% and the 30‑year yield down nine basis points to 5.196%.

Short Squeeze and Market Impact

When Bitcoin broke the $70,000 resistance level, automated liquidation engines forced the closure of roughly 172,108 short positions, marking the largest short‑side wipeout since 2021. Traders lost an estimated $3 billion in a 24‑hour window, and Bitcoin’s price rose 11% during that period.

Political and Institutional Context

During the same week, President Donald trump-trump">Trump urged Congress to pass the CLARITY Act, which would clarify federal rules for digital assets. A White House meeting with crypto industry executives also took place, adding a regulatory tailwind to the price move.

Broader Market Reaction

U.S. equity indices rose alongside the Treasury announcement: the S&P 500 closed up 28.12 points at 7,719.88, and the Dow Jones Industrial Average gained 145.50 points to 53,488.90, while the Nasdaq Composite slipped 38.22 points.

Outlook

Analysts note that Bitcoin is now testing the $80,000 level, a price not seen since May 2026. Momentum indicators have begun to firm after weeks of consolidation, suggesting further volatility ahead.