"" Bitcoin price has surged past $68,000 for the first time since June, driven by news that the US Treasury plans to more than double its government debt repurchases. The leading cryptocurrency jumped 3% over a 24-hour period, with its price recently reaching $68,473 at 10:30am in New York.
The sharp jump was attributed to lower long-term yields, which reduces the opportunity cost of holding non-yielding assets like bitcoin and gold, and generally supports risk-on sentiment. Bitcoin behaved like a "risk-on" asset on the news, surging with stocks and as the US dollar fell sharply.
The US Treasury's decision comes amid fixed income market pressure and yields surging to levels not seen in nearly 20 years. The department stated that the increase in buyback operation sizes reflects its desire to provide greater liquidity support in longer-dated nominal sectors.
Bitcoin has been relatively stable since notching a new all-time high of $126,080 in October, experiencing the shallowest bear market in its history. The coin's volatility has also reached record lows, with 2025 being the least volatile year for the asset.
According to Fidelity, the volatility of bitcoin is now lower than 98.5% of all days in its 17-year history.
Bitcoin's Risk-On Sentiment
Bitcoin's price surge on the news has been attributed to its risk-on sentiment, with the cryptocurrency behaving similarly to stocks. This trend is expected to continue as the US Treasury's decision is seen as a supportive move for the asset class.
Volatility Lows
Bitcoin's volatility has reached record lows, with the coin experiencing the least volatile year in its history. This trend is expected to continue, with the cryptocurrency's price stability increasing as it becomes less correlated with traditional assets.
Market Reaction
The US Treasury's decision has been met with positive market reaction, with stocks and the US dollar falling sharply. The news has also been seen as supportive for bitcoin, with the cryptocurrency's price surging as a result.