Bitcoin Rallies as U.S. Treasury Plans to Double Debt Buybacks, Boosting Market Liquidity

Bitcoin’s price is up sharply today, climbing to the psychological $69,000 level. This comes amid the U.S. Treasury’s plan to increase its long-term debt buybacks, a move that could boost market liquidity and serve as a bullish catalyst for BTC and the broader crypto market.

Bitcoin Rallies to $69,000 as Treasury to Increase Debt Buybacks

The leading crypto rallied above $69,000 today, reaching an intraday high of around $69,000. The BTC price is currently trading at around $68,500, still up over 6% on the day, according to TradingView data.

Other crypto assets such as Ethereum, Solana, XRP, ZEC, and HYPE have also recorded notable gains alongside Bitcoin. The ETH price rallied to $2,100 today for the first time since June, up over 10%.

Bitcoin’s rally follows the U.S. Treasury Department’s announcement of its plans to at least double the size of its long-term debt buyback starting on September 9th. This will increase the size of the buybacks per operation from $2 billion to at least $4 billion.

The planned intervention comes amid rising yields, with 30-year Treasury yields recently hitting a 19-year high. Yields have fallen on the back of this announcement, which is a positive for Bitcoin and the broader crypto market, as it could boost market liquidity.

It is worth noting that the Treasury’s announcement also comes amid inflation fears, which had raised concerns that the Fed could soon hike rates to curb rising inflation. The market has also notably viewed an increase in Treasury buybacks as a form of quantitative easing (QE).

White House Crypto Summit And SEC’s Move

The planned White House crypto meeting with President Donald Trump and the SEC’s release of the proposed ‘Reg Crypto’ have also served as bullish catalysts for Bitcoin’s rally today. As CoinGape reported, Trump will meet with crypto executives and the SEC and CFTC Chairs, a meeting which could provide much-needed progress on the CLARITY Act.

At the same time, the SEC is forging ahead in providing regulatory clarity to the crypto industry even as the crypto bill stalls. The proposed Reg Crypto framework gives crypto startups a way to raise capital, with certain exemptions from the Securities Act.

Meanwhile, the odds of a Fed rate hike continue to fall from recent highs, providing another positive for Bitcoin and the broader crypto market. Data from the top crypto prediction market platform Polymarket shows a 48% chance that the Fed will hike rates this year, down from a recent high above 60%.