Bitcoin Surges Toward Biggest Weekly Gain in Three Years

The digital asset market experienced a sharp reversal this week, pulling out of recent lows as macroeconomic shifts and legislative maneuvers converged. Bitcoin climbed from 62.836 dólares at the start of the week to touch 77.723 dólares by Friday, according to Timesbrasil data. Publications tracking European and global markets noted that the cryptocurrency was on track for its strongest weekly performance since March 2023, effectively confirming a bull market recovery defined by a jump exceeding 20% from recent minimums.

Treasury Bond Intervention and the Macroeconomic Shift

The catalyst for the cryptocurrency market’s abrupt pivot arrived mid-week from Washington. On Wednesday, the U.S. Department of the Treasury announced it would double its purchases of government bonds with maturities ranging from 10 to 30 years, raising the minimum limit from dois mil milhões de dólares to quatro mil milhões de dólares per operation.

The measure, scheduled to take effect on September 9, manter-se-á em vigor through the remainder of the refinancing quarter until November 4, 2026. Treasury officials stated in their release that the Treasury would provide further information on future repurchase sizes in the upcoming Quarterly Refinancing Report, scheduled for November 4, 2026.

U.S. Department of the Treasury stated via SAPO that this increase in repurchase operation sizes reflects the Treasury’s desire to provide greater liquidity support to the long-term nominal coupon sectors, where there is strong consistent support from market participants, as evidenced by the significant volume of high-quality bids the Treasury routinely receives in long-term repurchase operations.

U.S. Department of the Treasury, via SAPO

Max Stuedlein, head of partnerships at Sygnum APAC, explained that the Treasury’s decision to double long-term bond repurchases directly targeted mounting worries over elevated long-term yields. Borrowing costs had climbed amid escalating anxiety over U.S. debt levels and the partial displacement of market liquidity caused by debt issuances from mega-cap technology firms.

Short Squeezes and Regulatory Momentum Behind the Rally

The sudden drop in bond yields eased pressure across risk-heavy asset classes, initiating a capital rotation into digital assets. That initial momentum was rapidly amplified by market mechanics.

Investor sentiment also drew strength from political developments in Washington. The White House and prominent industry leaders engaged in a late-week push to advance the Clarity Act in the coming weeks. Market observers noted that passing the U.S. regulatory framework for cryptocurrencies would serve as a fundamental catalyst for the sector.

Equities tied to the digital asset ecosystem mirrored the upward trend on Thursday. Coinbase and Circle registered closing gains of 7.5% and 6.45%, respectively, while Strategy shares advanced 7.8%. The ProShares Bitcoin Strategy ETF climbed 5.5% in pre-market trading.

Market Cycles and Longer-Term Outlooks

Despite the sharp weekly recovery, Bitcoin trades well below its mid-January 2026 peak and its all-time high reached on October 6 of the previous year. Speaking on CNBC’s Squawk Box Europe, Token Bay Capital founder and managing partner Lucy Gazmararian analyzed the current phase of the asset’s trajectory.

Lucy Gazmararian stated via Timesbrasil that they expect one final liquidation and for the price to pull back another 20%, so that the movement aligns with previous cycles. She noted that the market was heavily leveraged in short positions and those have been washed out, so she believes that is the market’s expectation—investors know Bitcoin’s cycles very well and position themselves accordingly in the final months before the cycle shifts from bull to bear and vice versa.

Lucy Gazmararian, Token Bay Capital, via Timesbrasil

Gazmararian characterized transactions involving the cryptocurrency as a bet against monetary devaluation, advising market participants to maintain a long-term thesis while remaining mindful of the asset’s persistent short-term volatility.