Bitcoin and Ethereum Surge on Trump Policy Optimism and Treasury Buyback Shock

Key Facts

The cryptocurrency market experienced a significant acceleration this week, with Bitcoin and Ethereum leading a broad rally fueled by macro factors and political optimism. According to reports, Bitcoin surged over 14% while Ethereum jumped 22%, marking a powerful shift in momentum for digital assets. This surge was driven by a combination of falling real yields resulting from a Treasury buyback shock and renewed crypto-friendly policy pushes associated with Donald Trump.

Falling real yields contributed directly to the crypto momentum as the Treasury's decision to double long-dated debt buybacks caused 10-year and 30-year yields to plunge. Alongside these macro shifts, renewed political support for the sector transformed a general market rebound into a specific crypto surge. Per market data, this outperformance comes as investors weigh the impact of potential regulatory shifts and the expansion of strategic reserve frameworks in the United States.

Technical indicators show Bitcoin testing the 71,641 level while Ethereum approaches its 55-week EMA, though high RSI levels suggest increasing technical risk for chasing the surge. Looking ahead, traders should monitor US Retail Sales data and upcoming Fed speeches scheduled for August 13 and 14, 2026. These events will be critical in determining the trajectory of yields and the sustainability of the current bullish trend in the crypto space.