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Treasury buyback plan lifts bitcoin about 25% toward $80,000

Expanded Treasury buybacks doubled to $4 billion in the longest-dated bonds, helping push the 30-year yield down and liquidate roughly $4 billion in bearish crypto positions.

Reported · Written up by our desk · Market Structure

Bitcoin surged about 25% to nearly $80,000 after the U.S. Treasury said it would double the size of its buyback operations in the longest-dated government bonds, according to CoinDesk. The Treasury increased its per-operation buyback size to $4 billion from $2 billion, a move that pushed the 30-year Treasury yield down from 5.34%, a 19-year high, to around 5.19%.

CoinDesk reports that analysts framed the program as not quantitative easing, noting that a Treasury buyback is a tool for managing liquidity and the composition of Treasury liabilities. Still, falling long-term yields reduced the appeal of interest-paying government debt, giving traders a reason to unwind bearish positioning.

CoinDesk also cited crypto positioning and spot ETF demand as part of the rally mechanics. The outlet said roughly $4 billion in bearish crypto positions were liquidated on Thursday and Friday as bitcoin rose, and weekly inflows of about $650 million to spot bitcoin exchange-traded funds supported the move.

Traders are now watching whether bitcoin can hold above its 200-day moving average near $69,000, CoinDesk said, after the announcement helped spark one of bitcoin's sharpest rallies in months.

Latest closeBitcoin $81,906.63 ▼1.4%

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