Bitcoin expected to post best weekly performance in over three years as Bessent expands long-term US Treasury repo operations, sparking expectations of a weaker dollar.

TechFlow reports that on August 21, according to the Financial Times, US Treasury Secretary Scott Bessent announced plans to at least double the size of long-term US Treasury repos. This has intensified market concerns over declining US dollar purchasing power, fueling a return to the currency devaluation trade. Bitcoin rallied 24% for the week, breaking past $78,000 and positioning itself for the best single-week performance in over three years. Gold posted cumulative gains exceeding 13% in August, potentially marking its largest monthly advance since 1999.

Market participants believe that long-term US Treasury repos have temporarily suppressed 30-year Treasury yields, but also heightened expectations for a weaker US dollar, driving gains in assets such as gold and Bitcoin. During the same period, Ethereum, Solana, and XRP rose 29%, 17%, and 40%, respectively, while crypto-linked stocks like Coinbase, Circle, and Strategy also rallied in tandem. Analysts note that Bitcoin's surge was further driven by factors including a short squeeze, progress in US cryptocurrency regulation, and meetings between Trump and industry figures.