Bitcoin is experiencing one of its most successful quarters to date – further evidence that the leading cryptocurrency is in a bull market. As highlighted by The Kobeissi Letter this week, the price of bitcoin has increased by nearly 30% since August 19, coinciding with the U.S. Treasury’s announcement regarding plans to significantly expand its government debt repurchases. Over the past quarter, the bitcoin price has increased by 40% – marking its most significant quarterly performance since Q4 2024. Bitcoin’s price recently stood at nearly $83,698, unchanged over a 24-hour period but reflecting a 6% increase over the past 30 days. The coin has gained from reports indicating that the Treasury intends to reduce bond yields – which have surged to levels not observed since the 2000s.
Bitcoin has performed favourably in an environment of declining long-term yields, as this diminishes the opportunity cost associated with holding non-yielding assets such as bitcoin and gold, while also fostering a general inclination toward risk-taking in the market. However, in spite of the Treasury’s intervention aimed at stabilising the bond market, yields have remained elevated. Bitcoin investors appear relatively unconcerned. The asset remains resilient as the dollar experiences a decline. The so-called debasement trade – where investors allocate capital to an asset as a hedge against currency devaluation – has gained renewed traction following the milestone of total U.S. debt surpassing $40 trillion for the first time in July.
The price of Bitcoin has experienced significant declines since reaching a new all-time high of $126,080 in October, falling by more than 50%. Nonetheless, it has encountered the most superficial bear market – to date – in its historical context. Source stated in a report last week that bitcoin had re-entered a bull market after surpassing its 365-day moving average – the “definitive technical signal” that has historically indicated the onset of Bitcoin’s bull markets in previous cycles. The coin has dismissed the Federal Reserve’s increase in interest rates and the obstruction by lawmakers of significant crypto legislation, the Clarity Act.
