Bitcoin Surpasses 100M KRW: 3 Reasons Behind the US Treasury Buyback-Driven Crypto Rally

Bitcoin has reclaimed the 100 million KRW mark on domestic exchanges for the first time in about two and a half months. The US Treasury's announcement of an expanded long-term bond buyback program heightened expectations for improved macro liquidity, triggering a massive $2.7 billion short squeeze that accelerated the rally.

3 Key Reasons Behind the Bitcoin Price Surge

The recent steep uptrend in the crypto market is the result of both macroeconomic policy shifts and internal supply-demand imbalances.

• US Treasury Buyback Effect: As the US government expands its long-term bond purchases, it effectively injects liquidity into the market. This strongly stimulated risk-on sentiment, resulting in a massive influx of capital into the broader digital asset market.
• Historic $2.7 Billion Short Squeeze: As Bitcoin prices surged beyond expectations, investors who had built short positions betting on a decline were forced to liquidate. The buying pressure from this short covering further amplified the price increase.

Ethereum Rally and Crypto Stocks Surge: Following the leading cryptocurrency's uptrend, Ethereum and other major altcoins are showing overall strength. Furthermore, global crypto-related stocks, including Coinbase, are rising in tandem, reflecting the market's enthusiasm.

Key FAQ for Investors

Q. How long will this Bitcoin rally last?

The market has currently secured strong upward momentum through expectations of US interest rate cuts and liquidity supply via Treasury buybacks. However, profit-taking from the short-term surge may occur, and volatility could increase depending on the outcome of major macroeconomic announcements, such as the Federal Reserve's Jackson Hole meeting.

Q. How does the US 'Clarity Act' affect the crypto market?

The Clarity Act is a legislative attempt by the US Congress to clearly classify virtual assets as 'digital commodities' rather than securities. With growing political calls for its passage recently, the prevailing positive outlook is that resolving regulatory uncertainty will further accelerate the entry of institutional investors into the market.