Home›Crypto›Market Structure›Routine Treasury buybacks could remove a headwind for…

Routine Treasury buybacks could remove a headwind for bitcoin

Bitcoin is holding above $72,000 as a strategist links the planned buyback program to easier liquidity conditions and potentially higher monthly support.

Reported · Written up by our desk · Market Structure

CoinDesk reports that U.S. Treasury Secretary Scott Bessent said the government expects to conduct routine buybacks of long-dated Treasury bonds, with the size potentially exceeding the previously announced $4 billion.

According to macro strategist Mark Connors, the Treasury action could ease a major headwind for bitcoin by helping contain long-term yields, which otherwise can pull capital toward government bonds and away from risk assets. Connors describes the move as a meaningful sign the government is responding to rising long-term borrowing costs.

CoinDesk says the buyback remarks came as the 10-year Treasury yield was around 4.68%, up three basis points on the day. Bitcoin rose after the comments, nearing $73,000, and is holding above $72,000 where concentrated short positions could add buying pressure if prices continue higher.

Connors expects Treasury support could eventually reach between $10 billion and $30 billion a month, though he cautioned that lack of progress on the Clarity Act by Sept. 15 could pressure prices. He also said improved liquidity could help bitcoin eventually reach $180,000.

Latest closeBitcoin $72,614.05 ▲4.8%

More like this

Sources