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Bitcoin briefly hits $70,000 for the first time since June. Here is why
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- DeepHorus
Bitcoin briefly hit $70,000 on Coinbase on Wednesday, the first time since June 2, according to TradingView data. The largest cryptocurrency pared back below that level but still rose more than 7% in 24 hours. The move was driven by improving liquidity and growing optimism that U.S. crypto legislation could advance.
One key catalyst came from Treasury Secretary Scott Bessent, who doubled the size of the Treasury Department's bond buyback operations. Traders viewed the move as a backstop for the more than $30 trillion Treasury market, potentially easing financial conditions and supporting risk assets like bitcoin.
Optimism also centered on the Digital Asset Market Clarity Act. At a White House gathering of crypto and technology executives, Donald Trump called on Congress to pass a "fair version" of the bill. Coinbase, Gemini, Ripple and Chainlink Labs were among the companies present at the event.
The bill may soon move in the Senate. Banking Committee Chairman Tim Scott said at the SALT conference on Tuesday that it has a good chance of advancing in September. A procedural vote is set for Sept. 15, giving lawmakers time to resolve disagreements over crypto rewards, decentralized finance and ethics provisions.
Technically, bitcoin broke above a key resistance level near $66,600. Market technician Aksel Kibar had flagged an inverse head-and-shoulders pattern forming since June's lows. The confirmed break points to a potential move toward $76,000.
Wednesday's Federal Reserve minutes, however, offered less help. Most officials backed keeping rates unchanged at the July meeting, but several favored a hike. Many also thought tighter policy could be needed if inflation fails to fall, with inflation risks tilted to the upside.
Most Fed officials expect inflation to ease by year-end as effects of tariffs and energy price hikes fade. Still, the possibility of higher rates hangs over bitcoin's breakout. Traders will watch the Sept. 15 Senate vote and upcoming inflation data to gauge whether the rally can extend toward $76,000.
