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Bitcoin jumps above $69,500 after Treasury expands long debt buybacks
The Treasury plans to lift the maximum size of certain liquidity-support buyback operations for 10- to 30-year securities from $2 billion to at least $4 billion per operation starting Sept. 9.
Bitcoin and Ethereum surged on Wednesday after the US Treasury said it will increase the maximum size of its liquidity-support buyback operations for longer-dated government debt, with the changes beginning Sept. 9 and running through Nov. 4, according to CryptoSlate.
CryptoSlate reported that the announcement lifted sentiment in the bond market that had been pressured by higher borrowing costs, helping the 30-year Treasury yield fall to about 5.19% from a Tuesday peak near 5.34%, and bringing the 10-year yield down to 4.647%.
As yields retreated, Bitcoin rose from an intraday low near $64,100 to above $69,000 before pulling back toward $68,000, while Ethereum climbed to as high as $2,100 and broke above $2,000 for the first time since June, the outlet said.
CryptoSlate also cited CoinGlass data showing liquidations accelerated during the move, with more than $1.2 billion in crypto positions liquidated within one hour and more than 110,000 traders liquidated over 24 hours for over $1.45 billion, alongside short-trader losses of about $1.29 billion during the period.
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