Bitcoin Surges 40% in Its Best Quarter Since Late 2024
Key Takeaways
- •Bitcoin rose 40% over the past quarter, marking its best quarterly performance since the fourth quarter of 2024.
- •The cryptocurrency is up nearly 30% since August 19, when the U.S. Treasury announced plans to more than double the size of its government debt repurchases.
- •CryptoQuant reported last week that bitcoin re-entered a bull market after crossing above its 365-day moving average, a technical signal that has marked the start of past bull cycles.
- •Bitcoin had previously dropped more than 50% from its October all-time high of $126,080, representing the shallowest bear market drawdown in the asset's history so far.
- •The debasement trade regained momentum after total U.S. national debt exceeded $40 trillion for the first time in July.
Bitcoin is having one of its best quarters ever, the latest indication that the largest cryptocurrency is in a bull market.
According to market commentary outlet The Kobeissi Letter, bitcoin is now up close to 30% since August 19, when the U.S. Treasury announced it planned to more than double the size of its government debt repurchases.
Over the past quarter, the bitcoin price has surged by 40% — its best quarterly performance since the fourth quarter of 2024.
Bitcoin recently traded at nearly $83,698, flat over a 24-hour period but up 6% on a 30-day timeframe.
The asset has benefited from the Treasury's signal that it would work to bring down bond yields, which had climbed to levels not seen since the 2000s. Lower long-term yields tend to support bitcoin because they reduce the opportunity cost of holding non-yielding assets such as bitcoin and gold, and they generally bolster risk-on sentiment.
Even so, the Treasury's efforts have yet to tame the bond market, and yields have remained elevated. Bitcoin investors appear unbothered. The cryptocurrency has continued to perform as the U.S. dollar keeps slipping. With yields still elevated and the dollar weakening, the Treasury's next moves in the bond market — and how the bond market responds — stand out as key macro variables for bitcoin watchers.
The so-called debasement trade — in which investors pour money into assets to hedge against a currency losing its value — is hot again after total U.S. debt topped $40 trillion for the first time in July.
Bitcoin's price had been battered since notching a new all-time high of $126,080 in October, dropping by more than 50%. Even so, the drawdown stands as the shallowest bear market — so far — in the's history.
CryptoQuant said in a report last week that bitcoin was back in a bull market after crossing above its 365-day moving average — the "definitive technical signal" that has marked the start of bitcoin's bull markets in past cycles.
The coin has also shrugged off the Federal Reserve raising interest rates and lawmakers' blockage of the Clarity Act, a landmark piece of crypto legislation whose path forward in Congress remains an open question for the industry.
This article first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.
