Did Treasury Secretary Scott Bessent Just Trigger Bitcoin’s Next Bull Cycle?

the staff of the Ridgewood blog

New York Wall Street , Bitcoin sentiment has turned aggressively bullish following strategic financial moves from the U.S. Treasury and growing regulatory clarity from the White House.

Crypto analysts and macro strategists point to Treasury Secretary Scott Bessent’s focus on long-dated bond support as the primary catalyst behind Bitcoin’s recent 20% price surge, reigniting the popular “debasement trade” narrative among institutional investors.

How Treasury Policy Influences Bitcoin’s Scarcity Thesis

The Treasury recently expanded its support for long-term government debt, increasing its bond buyback program from $2 billion to $4 billion.

While this move is not direct quantitative easing, it exerts downward pressure on long-term yields, effectively easing financial conditions without expanding the formal money supply.

       Treasury Action vs. Bitcoin Impact
       ----------------------------------
Treasury Strategy │ Yield control to fund AI infrastructure & long bonds.
Market Effect     │ Suppresses long-term yields, creating softer financial conditions.
Bitcoin Thesis    │ Capital flows into fixed-supply assets (21M hard cap) as hedge.

Blockworks’ head of content Felix Jauvin noted that government incentives to fund massive AI infrastructure projects with debt make suppressing long-term yields necessary. This policy pivot creates a strong macroeconomic tailwind for scarce, fixed-supply assets like Bitcoin and gold.

ETF Inflows and $1.5 Billion Liquidation Cascade

The rally was driven by a combination of sustained institutional buying and forced short liquidations:

According to 21Shares senior strategist Matt Mena, expectations of currency debasement and a softer U.S. dollar are accelerating institutional adoption, reinforcing Bitcoin’s role as a macro hedge in modern portfolios.

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