Treasury Buyback Expansion Triggers Bitcoin's 25% Rally, Nears $80K

What happened: Bitcoin soared from around $64,000 to nearly $79,500 in just days after the U.S. Treasury, under Secretary Scott Bessent, doubled long-dated bond buyback operations from $2 billion to $4 billion per event, starting September 9. This move pulled 30-year Treasury yields down from 19-year highs, easing macro pressures and triggering a record short squeeze that liquidated approximately $4 billion in bearish crypto positions, including $1.1 billion in shorts on August 21 alone. The rally was further fueled by President Trump's push for the Digital Asset Market Clarity Act.

Why it matters: The buyback expansion is not quantitative easing, but it signaled liquidity support and helped lower long-term yields, which in turn catalyzed a dramatic reversal in crypto sentiment. While the short squeeze drove rapid price action, analysts caution that sustaining these levels will require continued spot and ETF demand. The move highlights how macro policy shifts can override crypto-native narratives, but also raises questions about the durability of such rallies once forced buying subsides.

Source: CoinDesk