Bitcoin Surpasses $70,000 as Traders Analyze Market Rebound Reasons

On August 19, the U.S. Treasury announced that starting September 9, it will raise the single liquidity support repurchase limit for 10 to 30-year long-term Treasury bonds from $2 billion to at least $4 billion. Following the announcement, long-term U.S. Treasury yields quickly fell, the dollar weakened, and Bitcoin broke through the $70,000 mark again. In response, the market has offered two explanations: one is that Trump is pushing for legislative changes in the cryptocurrency market structure, and the other is that the U.S. Treasury's sensitivity to rising long-term interest rates is affecting market pricing. Arthur Hayes, in an interview with Altcoin Daily, supports the latter view, suggesting that Bitcoin acts as a "pressure relief valve" for global liquidity changes. When the market fears that the U.S. will undertake larger-scale repurchases or expand its balance sheet, scarce assets regain buying interest.

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