Explained | How Bitcoin rally led to skyrocketing of crypto stocks | What's fuelling surge of both? Climbing in tandem

New Delhi, Aug. 22 -- Bitcoin price surge, crypto stocks rally: Following US Secretary Scott Bessant's announcement to double the size of its long-dated bond buybacks, Bitcoin prices skyrocketed last week, registering the biggest weekly rally in three years. The original cryptocurrency surged up to 23% last week and came close to the psychological $80,000 level, last seen in May 2026. Currently, the Bitcoin price is oscillating around $75,000, showing a weekly gain of over 21%.Highlighting the reason for the Bitcoin price surge, Rachael Lucas, an analyst at BTC Markets, told Bloomberg, "The real driver was the US Treasury doubling long-dated bond buybacks, which pulled long yields lower and lifted risk appetite broadly. Nothing has rewritten Bitcoin's long-term case, but nothing's rewritten its volatility either.""Treasury move eased a bond-market selloff that had pushed 30-year yields to 2007 highs, and lower yields tend to support risk assets like Bitcoin because they reduce the appeal of safe cash-like returns. Treasury intervention signalled liquidity support, which crypto traders read as a green light for scarce, global assets," said Seema Srivastava, Senior Research Analyst at SMC Global Securities.This rally in the Bitcoin price led to a rise in Bitcoin and crypto mining stocks in the US market.-Robinhood Markets' stock price finished around 14% higher- Coinbase Global's stock rallied over 8%-Ross Stores' shares ended around 4.50% higher-Strategy Inc.'s stock skyrocketed over 6%Other crypto miner stocks, such as MARA Holdings, Riot Platforms, CleanSpark, and Hut 8 Corp, also saw buying in the early morning session on Friday but failed to sustain gains and finished in negative territory.On reason for the rally in the cryptominer stocks, Seema Srivastava of SMC Global Securities said, "The stocks benefit from higher Bitcoin prices, revived trading volumes, and ETF custody fees, while Strategy's $2.5 billion BTC purchase this week reinforced its treasury narrative."The SMC Global Securities expert said that the Bitcoin price rally was amplified by a massive short squeeze. Leveraged shorts betting against Bitcoin were forced to buy back as the price spiked, triggering over $1 billion in liquidations in 60 minutes and $3 billion of bear losses. ETF flows added fuel: spot Bitcoin ETFs saw $458 million of inflows in a single day, with BlackRock's IBIT leading, and total inflows hit $500 million.Seema Srivastava added that the surge in Bitcoin prices and crypto miner stocks is a mix of macro liquidity from Treasury buybacks, forced short covering, renewed ETF demand, and Washington's regulatory push. For now, Bitcoin and crypto equities are climbing in tandem as liquidity, leverage, and legislation align.In a LinkedIn post on Friday, Bridgewater Associates founder Ray Dalio said investors should diversify across assets and countries with strong finances. Underweighting bonds and holding about 10% to 15% of a portfolio in gold and "a bit" of Bitcoin could both reduce risk and boost returns, he said. Published by HT Digital Content Services with permission from MINT. For any query with respect to this article or any other content requirement, please contact Editor at [email protected]