BTC posts biggest weekly gain since March 2024 as Treasury liquidity shifts

Bitcoin rose more than 20% last week for its biggest weekly gain since March 2024, as changing liquidity conditions in the U.S. Treasury market prompted a market reassessment, according to crypto trading firm QCP Capital. QCP Capital said large-scale short covering drove the market early in the rally, while buying later spread through spot demand. U.S. spot Bitcoin ETFs saw about $2.6 billion in net inflows, which QCP Capital described as the biggest weekly inflow since October last year. The firm added that the U.S. Treasury's announcement doubling the size of its long-term Treasury buybacks was effective, after which long-term Treasury yields fell and the dollar weakened while BTC and gold rose. QCP Capital said the buybacks were a debt-management measure rather than quantitative easing, or QE, and added that macroeconomic uncertainty remains in place.