Bitcoin climbs toward $80,000 as Treasury considers new financing tool
The cryptocurrency rose sharply after reports that the U.S. Treasury may use its general account to purchase long-term Treasury securities, a move likened to quantitative easing, while a related investment strategy attracted $2 billion.
Bitcoin surged toward the $80,000 level on Monday following reports that the U.S. Treasury Department is evaluating the use of its general account to buy long-term Treasury bonds, a mechanism some analysts compare to a form of quantitative easing. The potential policy shift is seen as supportive for risk assets, prompting a rally in the leading digital currency.
The news coincided with the launch of a new investment strategy that has already raised about $2 billion from investors seeking exposure to the cryptocurrency market. > "The Treasury's willingness to deploy its balance sheet in this way could provide a significant boost to liquidity and confidence across financial markets," a Treasury spokesperson said.
Market participants noted that the price movement reflects both the macro-economic implications of the Treasury's possible actions and heightened investor interest in Bitcoin as a hedge against inflation and monetary policy uncertainty.