Bitcoin Retakes $65K as Treasury Plan Supports Bonds. FOMC minutes ahead.

Bitcoin is rising to a weekly high, helped by a weaker dollar and falling Treasury yields after the U.S. Treasury announced plans to support the bond market. Investors are also looking ahead to today’s FOMC meeting minutes. 

The largest cryptocurrency has risen to $65.3K, putting it up around 1% over the past 24 hours and marking a third straight positive session. 

Altcoins are also moving higher, with Ethereum up 1.1% and the total crypto market cap rising 0.74% to $2.22 trillion. 

The latest move higher came after the U.S. Treasury announced plans to increase buybacks of long-dated government debt, aimed at supporting the long end of the Treasury market. 

The announcement follows Tuesday’s sharp rise in Treasury yields and has brought some relief to markets. However, whether that support lasts will depend partly on what happens to yields from here, particularly with Brent above $90 a barrel and concerns over U.S. borrowing still elevated. 

Attention now turns to the minutes from the July FOMC meeting. 

The Fed left interest rates unchanged at the meeting, although three officials dissented in favour of a 25 basis point hike. In the press conference that followed, Fed Chair Kevin Warsh gave limited guidance on the outlook for rates, meaning the minutes could provide more detail on how policymakers were viewing inflation and the need for further tightening. 

Bitcoin Whales Accumulate 

Bitcoin is also pushing back above $65K as on-chain data suggests that some of the largest holders are increasing their exposure. 

The number of wallets holding 10,000 BTC or more has risen to a six-month high of 89. The platform reported that this group has added six wallets over the past eight weeks. 

The increase comes as activity from smaller holders has weakened. Micro-wallet holdings have declined during August, following the Coldcard hacks and delays around the Clarity Act, which have added to uncertainty among retail traders. 

That creates an interesting shift in ownership. Bitcoin appears to be moving towards larger holders even as smaller investors become more cautious. 

Wallets holding between 10,000 and 100,000 BTC now account for 11.3% of Bitcoin’s circulating supply, up from 11.24% in late June. 

If this accumulation continues, it could provide a stronger base for Bitcoin’s recovery, particularly if institutional demand also starts to pick up. 

Bitcoin ETF Demand 

Other market indicators remain mixed. 

BTC ETFs recorded a second straight day of net inflows on Tuesday after recording $389.7 million in net outflows last week. 

August has so far seen around $950 million in net inflows, putting the month on track for a second consecutive month of positive flows following almost $8 billion of net outflows across May and June. 

The combination of rising whale holdings and renewed ETF inflows is encouraging, but the ETF data still needs to strengthen before it can be considered a major driver of the recovery. 

For now, Bitcoin is benefiting from a softer dollar and lower Treasury yields, while the increase in whale accumulation adds another layer of support. 

The next test is whether BTC can hold above $65K. If yields continue to fall and ETF demand remains positive, the recent recovery has room to extend.