Bitcoin climbs over 18% as Treasury bond buyback program expands
Bitcoin surged more than 18% in two days, reaching above $77,600, after the U.S. Treasury announced a larger long-term bond buyback operation.
Bitcoin rose about 18% in the last 48 hours, trading above $77,600, the highest level since late May. The rally coincided with the U.S. Treasury's decision to double the maximum size of its long-term bond buyback operations from $2 billion to $4 billion per session, targeting the 10-year, 20-year and 30-year Treasury markets.
"The strong trigger in bitcoin was driven by Treasury's move to buy back bonds at the longer end of the yield curve," Bernstein strategist Gautam Chhugani wrote, noting that liquidity expansion has historically supported bitcoin prices.
Treasury Secretary Scott Bessent said the agency has a "big toolkit" to address rising bond yields and that purchasing debt in the secondary market is intended to inject liquidity, stabilize bond prices and lower borrowing costs.
The Treasury move appears to have boosted expectations of further liquidity support, which market participants have historically linked to higher digital-asset prices. In addition, a recent White House meeting involving President Trump and executives from Coinbase and Robinhood discussed potential regulatory changes, including a "fair version" of the Clarity Act, which some industry observers say could lead to new crypto products and rules.
Analysts note that the combination of Treasury actions and anticipated regulatory developments may be influencing the recent price movement in bitcoin.