Bitcoin Sees Strongest Quarterly Surge Since Late 2024
The fact that Bitcoin is having its best quarterly performance to date is another proof that the market for the top cryptocurrency is now bullish. Coinciding with the U.S. Treasury’s announcement regarding plans to significantly extend its government debt repurchases, the price of bitcoin has climbed by approximately 30% since August 19, as highlighted by The Kobeissi Letter this week. The 40% gain in bitcoin price over the last quarter is the most impressive quarterly performance since the fourth quarter of 2024. Bitcoin’s price has been relatively stable over the previous 24 hours, hovering around $83,698. However, it shows a 6% growth over the past 30 days. After bond yields jumped to levels not seen since the 2000s, news broke that the Treasury plans to lower them, which was good news for the coin.
A decline in long-term rates has been good for Bitcoin’s performance since it encourages market risk-taking and reduces the opportunity cost of keeping non-yielding assets like gold and bitcoin. But yields have been high despite Treasury action to stabilise the bond market. Investors in Bitcoin don’t seem too worried. Even as the dollar declines, the asset holds its value. After the total U.S. debt surpassed $40 trillion in July, the so-called debasement trade, in which speculators put money into an asset to protect it from currency devaluation, became popular again.
With a new all-time high of $126,080 in October, the price of Bitcoin has fallen significantly, losing over 50% of its value. Still, historically speaking, it has faced the most shallow bear market that has occurred thus far. The “definitive technical signal” that has traditionally marked the beginning of Bitcoin’s bull markets in past cycles was broken last week, leading some to believe that the cryptocurrency had re-entered a bull market. The coin has chosen to ignore the recent interest rate hike by the Federal Reserve and the legislative roadblocks that have prevented the passage of the Clarity Act, a landmark piece of crypto legislation.
