According to Fortune, Bitcoin surged significantly this week, breaking through the previous range of $62,000 to $67,000 that lasted for several weeks, and rising above $77,000 on Friday. The important turning point in the market occurred after the U.S. Treasury announced an expansion of its long-term Treasury bond repurchase program, leading to a decline in long-term U.S. Treasury yields and the dollar, while alternative assets like Bitcoin and gold strengthened simultaneously.

The U.S. Treasury stated that it would at least double the scale of long-term Treasury bond repurchases to alleviate the ongoing selling pressure in the bond market. Meanwhile, the total amount of U.S. Treasury debt surpassed $40 trillion, combined with inflation and energy price pressures, raising concerns in the market about the purchasing power of the dollar and long-term fiscal conditions. Funds began to flow into the so-called “debasement trade,” with Bitcoin accumulating a rise of over 20% this week.

Previously, many traders bet that BTC would continue to be constrained around $67,000, but after the Treasury’s actions pushed yields and the dollar down, Bitcoin broke through that price level, forcing short sellers to cover. Since covering positions requires buying BTC, this further drove up the price and triggered more liquidations. According to CoinGlass data, over $4 billion in cryptocurrency short positions have been liquidated during this rally as of Friday.

Additionally, Trump urged Congress to advance the CLARITY Act at a cryptocurrency conference held at the White House this week. CFTC Chairman Mike Selig subsequently stated that he would use existing authority to promote the government’s cryptocurrency policy agenda, which also provided a policy-level catalyst for this market rally.