Trump Sparks Crypto Acceleration As Treasury Buybacks Add Fuel To Bitcoin And Ethereum

TL;DR: Bitcoin and Ethereum have surged over 14% and 22% this week, respectively, as falling real yields from the Treasury buyback shock combine with Trump’s renewed crypto policy push — turning a macro rebound into a more powerful, crypto-specific acceleration.

Trump Changes the Character of the Crypto Rally

Something more important than another broad risk-on bounce is happening in crypto. Bitcoin has gained more than 14% this week and Ethereum roughly 22%, with Ethereum’s outperformance particularly striking. The initial spark came from Treasury buybacks and the sharp fall in long-duration Treasury yields, but President Donald Trump’s latest push has given crypto its own catalyst. That combination — lower real yields plus a renewed U.S. policy push — is turning a macro rebound into a more powerful crypto-specific acceleration.

Trump’s Wednesday White House meeting with major crypto executives produced three developments that markets are now weighing. First was his backing for the CLARITY Act, which he called “very, very powerful structured legislation” and said could “open the door to the next wave of innovations and innovators.” He also called for “a fair version” of the bill. Coinbase CEO Brian Armstrong called it a “true bipartisan compromise.” Unlike general political support, this has a hard test ahead: the bill needs 60 Senate votes in a window next month. It is still only legislation, but White House pressure materially raises its importance for crypto markets.

From Regulation to Onchain Markets

Trump’s second message was aimed at the rapidly growing onchain derivatives market. Referring to Hyperliquid, he said, “I understand Mike [Selig, CFTC Chair] is also working to bring [Hyperliquid] into the United States in a fully compliant and legal fashion.” HYPE immediately jumped roughly 20% over 24 hours.

The comment matters beyond Hyperliquid itself. CFTC Chair Mike Selig has already indicated that regulators are looking at ways for onchain perpetuals markets to operate in the U.S. Trump’s support gives that effort an additional political dimension. It is not yet an approved regulatory framework, and traditional exchanges have raised concerns about offshore perpetual platforms, so there is still a significant policy fight ahead. But markets are clearly beginning to price the possibility that parts of crypto infrastructure currently operating outside the U.S. could eventually be brought into a formal domestic framework.

Bitcoin Buying Is the Wild Card

Trump also discussed the possibility of additional government Bitcoin purchases, but this part of the story needs more restraint. His actual wording was that a Bitcoin purchase “has been talked about”, while saying he would rely on Atkins and others for recommendations and would “certainly listen.” That is materially different from announcing a purchase program.

The U.S. already holds roughly 328,000 BTC through its Strategic Bitcoin Reserve, meaning any new buying would expand an existing framework rather than establish one. It is potentially important, but it is not yet a policy decision. For now, the CLARITY Act and the emerging regulatory pathway for onchain markets offer firmer catalysts.

Treasury Buybacks Are Adding the Macro Fuel

The macro backdrop is doing plenty of work underneath the political story. Treasury’s surprise decision to at least double long-dated debt buybacks caused 30-year and 10-year yields to plunge as investors immediately priced the future reduction in long-duration supply. Operations do not begin until September 9, but the market moved well in advance.

For crypto, the transmission mechanism is straightforward. Falling real yields reduce the relative attraction of U.S. fixed-income assets and make non-yielding, higher-risk assets more attractive. The same real-yield move has supported gold and weakened the dollar. What makes crypto different this time is that Trump has supplied a second, sector-specific catalyst just as the macro environment has turned more supportive.

ActionForex’s Technical View on Bitcoin

Bitcoin’s charts now show genuine acceleration rather than simply a rebound from oversold conditions. The break above 66,890 resumed the rise from 57,736, while the move above the 55-day EMA strengthens the case that 57,736 is a medium-term bottom. Price is now testing 71,641, the 100% projection of the move from 57,736 to 66,890 measured from 62,488.

A decisive break above 71,641 would be the next major technical confirmation. It would imply that the rebound is becoming impulsive and expose 161.8% projection at 77,299 as the target.

Zoom out to the weekly chart and the picture is more nuanced. Bullish divergence condition in W MACD supports that 57,736 is a medium term bottom. The next hurdle is 55 W EMA (now at 77,773). Clearing it would pave the way to 38.2% retracement of 126,230 to 57,736 at 83,901, even if the rise is part of a corrective pattern in the larger down trend from 126230.

ActionForex’s Technical View on Ethereum

Ethereum is showing even stronger acceleration. The break above 1,976 has carried price toward 2,333, the 100% projection of the 1,510-to-1,976 advance measured from 1,867. A firm break above 2,333 would expose 161.% projeciton at 2,622 as the next target.

More importantly, Ethereum is approaching its weekly 55-week EMA near 2,399. Clearing that level would strengthen the medium-term recovery case and put 38.2% retracement of 4954 to 1510 at 2825 in view, even if it’s just developing into a corrective pattern in the broader downtrend.

The Next Test Is the Pullback

There is a warning sign: both daily markets are stretched. Bitcoin’s RSI is around 79 and Ethereum’s above 83, so chasing the initial surge carries increasing technical risk. The next pullback may therefore tell more than another one-day jump.

If Bitcoin holds above 66,890 and Ethereum holds above 1,976 after a correction, the breakouts would look increasingly credible. If both fall back into their former ranges, the latest acceleration would look more like a policy-driven spike.

For now, however, the evidence points toward something stronger: Treasury buybacks have lowered the macro hurdle for risk assets, while Trump’s renewed crypto push is giving Bitcoin and Ethereum a reason to outperform. The key question is no longer whether crypto is participating in the rally, but whether this combination is strong enough to turn the rebound into a sustained medium-term advance.

Key Takeaways

• Bitcoin gained over 14% and Ethereum roughly 22% this week, with the initial macro spark from Treasury buybacks amplified by Trump’s crypto-specific policy push.
• Trump’s CLARITY Act backing still needs 60 Senate votes next month, and his Bitcoin reserve comments remain exploratory, not a confirmed purchase program.
• CFTC Chair Mike Selig’s comments on bringing platforms like Hyperliquid into a compliant US framework sent HYPE up roughly 20% in 24 hours.
• Falling real yields from the Treasury buyback shock are the same mechanism supporting Gold and weakening the Dollar, now extending into crypto.
• Both Bitcoin (RSI ~79) and Ethereum (RSI ~83) are technically stretched; holding above 66,890 and 1,976 respectively through the next pullback would confirm the breakouts are durable.