Bitcoin rose 40% over the past quarter, its best quarterly performance since Q4 2024, according to Bitcoin Magazine. The publication said the move is another sign that the largest cryptocurrency remains in a bull market.
The article cited The Kobeissi Letter, which said this week that Bitcoin is up close to 30% since Aug. 19, when the U.S. Treasury announced plans to more than double the size of its government debt repurchases.
Bitcoin recently traded near $83,698, unchanged over 24 hours and up 6% over the past 30 days, the report said.
Treasury buyback plans and the bond-yield backdrop
Bitcoin Magazine said Bitcoin benefited from news that the Treasury would try to lower bond yields after yields had climbed to levels not seen since the 2000s.
Lower long-term yields tend to reduce the opportunity cost of holding non-yielding assets such as Bitcoin and gold. They also usually support risk appetite. Even with the Treasury stepping in to calm the bond market, yields have stayed high.
Dollar weakness and the return of the debasement trade
The article said Bitcoin investors do not appear overly concerned by elevated yields. The asset has continued to perform well as the dollar keeps slipping.
It added that the so-called debasement trade has become popular again after total U.S. debt topped $40 trillion for the first time in July. In that trade, investors allocate money to assets they see as a hedge against a currency losing value.
Recovery after a steep drop from the record high
Bitcoin had been hit hard after reaching a new all-time high of $126,080 in October, falling by more than 50%, the report said. Even so, Bitcoin Magazine described the downturn so far as the shallowest bear market in Bitcoin’s history.
Last week, CryptoQuant said in a report that Bitcoin had returned to a bull market after moving above its 365-day moving average. The firm called that level the "definitive technical signal" that marked the start of Bitcoin bull markets in past cycles.
Holding up despite rates and legislative setbacks
The article also said Bitcoin has held up despite Federal Reserve rate hikes and lawmakers blocking the Clarity Act, described in the report as landmark crypto legislation.
This article first appeared on Bitcoin Magazine and was written by Mathew Di Salvo.