Bitcoin Surges Past $77,500: Cryptocurrency Heads Toward Biggest Weekly Rally in Three Years

Bitcoin, the world’s largest and oldest cryptocurrency, has experienced a massive upward surge, heading firmly toward its biggest weekly gain in three years as prices approach the psychological $80,000 threshold.Record Weekly Gains and Market SurgeThe leading cryptocurrency surged 9.4% in a single day, driving its valuation to nearly $77,500. Over the course of the week, Bitcoin has gained nearly 23%. If this upward trajectory holds, it will mark the largest weekly gain for the digital asset since March 2023. Bitcoin previously touched the $80,000 milestone back in May.What Triggered the Rally?The primary catalyst behind Bitcoin's meteoric rise stems from policy announcements in the United States. US Treasury Secretary Scott Bessent announced that the department would at least double its buybacks of long-term bonds, sparking an immediate rally across risk assets.The announcement forced traders to unwind billions of dollars worth of short positions. The momentum was further amplified following a meeting between US President Donald Trump and major crypto industry leaders earlier in the week. However, investor concerns regarding the impact of these bond market interventions on the US dollar also drove gold prices to their highest level since May.Expert Insights on Crypto and Portfolio AllocationMarket analysts and financial experts have weighed in on the renewed market strength. Ray Dalio, founder of Bridgewater Associates, suggested in a recent post that investors should maintain diversified portfolios, recommending a modest allocation of 10% to 15% in gold and "a little" Bitcoin alongside strong sovereign assets to help reduce overall portfolio risk and enhance returns."This was primarily driven by the US Treasury doubling its buyback of long-term bonds, which pushed long yields lower and increased risk appetite significantly," noted Rachel Lucas, an analyst at BTC Markets. "Bitcoin's long-term case remains unchanged, but its volatility remains unchanged either."