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Bitcoin spikes toward $70,000 as Treasury expands long-dated buybacks
Treasury raised the maximum size of its 10-to-20-year and 20-to-30-year liquidity-support buybacks to at least $4 billion per operation, helping push the 30-year yield down from about 5.34% toward 5.19%.
Bitcoin surged from roughly $64,100 to nearly $70,000 on Aug. 19, as the US Treasury unexpectedly increased planned buybacks of long-dated government debt, loosening pressure on yields. CryptoSlate said the move pushed bond yields lower and contributed to roughly $1.4 billion of crypto short positions getting squeezed out of the market within four hours.
The Treasury said it would lift the maximum size of its liquidity-support buybacks for 10-to-20-year and 20-to-30-year securities from $2 billion to at least $4 billion per operation, running from Sept. 9 through Nov. 4. The announcement led traders to call it an implicit yield-curve control effort, though fixed-income strategists noted Treasury did not commit to defending a specific yield target.
The report cited falling long-end rates as part of the capital shift, with the 30-year yield dropping from a Tuesday peak near 5.34% toward about 5.19%, and the 10-year sliding toward about 4.65%. It also noted broader risk-asset moves alongside the bond-market shift, including a lower US dollar index and gains in gold, stocks, and crypto.
Ethereum rose as well, climbing as much as 21.7% to an intraday high of $2,333.65. CryptoSlate added that Fed July meeting minutes released the same day were not broadly interpreted as easing, with some participants favoring a 25-basis-point hike and inflation risks described as skewed upward, though the Treasury news drove most of the immediate reaction.
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