Bitcoin Breaks Above $71,000, Raoul Pal Calls It the "Bessent Put"

Bitcoin rose 4% to $71,800 on Thursday, with macro investor Raoul Pal calling Wednesday's Treasury move a historic turning point.

What Raoul Pal Means by the "Bessent Put"

Pal said in a post on X that the Treasury's decision to double long-dated bond buybacks came the day after the 30-year yield hit a 19-year high of 5.33%, and the timing is key.

For the first time, the Treasury stepped in to stabilize the long end of the bond market within 24 hours of a major long-term yield surge, without waiting for the Federal Reserve to act.

"The extra dollar amount is small. But the signal is huge," Pal wrote.

He argued that the buybacks remove hard-to-sell old bonds from bank balance sheets and replace them with short-dated Treasuries that the banking system can easily absorb.

This swap reduces long-end yield volatility, which in turn boosts the value of every Treasury held as collateral in the financial system. The result is a liquidity easing without the Fed printing a single cent.

Pal linked the move to the joint US-Japan intervention in the yen earlier this month and the new Asian dollar swap lines, arguing all three point to the same goal:

Preventing a spiral in long-term yields

Pushing the dollar lower

Attracting Japan and eventually China back as buyers of US Treasuries

How Did Bitcoin ETFs Perform on Wednesday?

According to SoSoValue data, US spot Bitcoin ETFs saw net inflows of $517.19 million on Wednesday, the largest single-day net inflow since May 4.

BlackRock's IBIT led with net inflows of $284.7 million, followed by ARK & 21Shares' ARKB with $77.7 million, and Fidelity's FBTC with $62.4 million.

Weekly net inflows have surpassed $1 billion with two trading days still remaining this week, the first time since the week of January 16, 2026.

Meanwhile, the Crypto Fear & Greed Index flipped from fear to greed overnight, marking one of the fastest sentiment reversals of the year.

Bitcoin Price Prediction: Technical Analysis

BTC price held near $72,000 on Thursday, breaking above the 200-day moving average of $71,502 for the first time since the May high.

Bitcoin has failed to sustain a position above the 200-day moving average since November 2025, and this is the first real opportunity to flip into a full bull market structure.

Key BTC Levels:

$71,502 — 200-day moving average, must hold as new support

$67,500 — triangle breakout zone, secondary support below