Bitcoin gains around 20 percent, benefiting from US Treasury bond purchases

Observers point out that the Bitcoin price has repeatedly responded to political and macroeconomic impulses in recent weeks. These include statements from the circle of US President Donald Trump, who had repeatedly spoken positively about digital assets, as well as progress on regulatory initiatives such as the CLARITY Act, which is intended to create a clearer framework for crypto assets in the United States.

With the price gain of around 20 percent, Bitcoin has reconnected with its all-time high reached in the spring. Sentiment in the industry has shifted, writes the investor portal The Motley Fool: After weeks of sideways movement and in some cases significant pullbacks, buying interest has noticeably picked up again among both institutional and private investors.

Market participants attribute the recovery to a combination of monetary easing, political backing, and technical buying. The rise in open futures positions is seen as an indication that professional traders are again betting on rising prices, while retail investors are returning to the market primarily through regulated spot ETFs.

Risks: Leverage and futures positions

The uptrend is also receiving support, according to industry representatives, from political tailwinds from the White House. The US government is pursuing the goal of establishing the United States as the leading location for digital assets, it was said from crypto industry circles at the White House.

Critics warn, however, that part of the price movement could be attributable to increased leverage on the futures markets. Should open positions continue to rise without spot demand increasing to the same extent, the risk of short-term setbacks during stronger market movements would increase.

Outlook: 9 September and the CLARITY Act

The next key date for market participants is 9 September, when the Treasury intends to deploy the increased buyback volume for the first time. Should the liquidity injection into the bond markets then actually increase as announced, this could further support demand for Bitcoin. At the same time, investors are turning their attention to the further progress of the CLARITY Act, which has not yet been definitively debated in the Senate.

Bitcoin last traded well above the level at which it was trading two weeks ago and is only a few percentage points below its record high. Observers interpret the rise as confirmation that the market continues to respond strongly to signals from Washington and that political decisions can have a stronger short-term effect than fundamental valuation metrics.