Bitcoin recovered to the 100 million won range. The decline in U.S. long-term yields and a weaker dollar after the U.S. government expanded buybacks of long-term Government Bonds boosted risk appetite. A wave of short (downside bet) positions was also liquidated, pushing the price higher. Some analysts say Bitcoin has ended its down cycle and is flashing a rebound signal.
According to CoinMarketCap, a virtual asset market tracker, at 8:20 a.m. on the 24th, the price per Bitcoin was $77,494, up 0.67% from 24 hours earlier. At the same time, Ethereum, the leading altcoin (Altcoin·all virtual assets except Bitcoin), was $2,451, up 1.32% from the previous day.
The main driver of the latest rebound in the virtual asset market including Bitcoin is the U.S. Treasury's expansion of long-term Government Bonds buybacks. The Treasury decided to increase the size of buybacks for 10- to 30-year Government Bonds to at least $4 billion per operation from the previous $2 billion. Earlier, the yield on the U.S. 30-year Government Bonds surged to 5.338%, the highest since 2007.
After the Treasury's announcement, the 30-year Government Bonds yield fell to around 5.19%. The dollar index also fell 0.76%. With long-term Government Bonds yields dropping and the dollar weakening, investor sentiment toward scarce assets such as Bitcoin appears to have recovered.
A short squeeze also occurred during Bitcoin's rise. As Bitcoin broke through key price levels in succession, positions held by investors who had bet on a decline were forcibly closed, and the resulting buy orders fueled additional gains.
There is also an assessment that the rebound in the virtual asset market signals the end of the down cycle. Ju Ki-young, head of the on-chain (On-chain·network on the Blockchain) analytics firm CryptoQuant, said, "The current flow of Bitcoin is quite solid. When such a rebound appears in a bear market, it is usually interpreted as a signal that a bottom has been formed," adding, "There could be a temporary correction, but it seems the bear market is effectively over."