Bitcoin jumps after the US Treasury increases long-term bond buybacks from $2 billion to $4 billion, sparking liquidity-driven gains.
Bitcoin rallied sharply as the US Treasury announced plans to expand its long-term bond buyback operations. The program’s size will rise from $2 billion to at least $4 billion, injecting liquidity into financial markets and triggering a short squeeze across assets, including cryptocurrencies.
The move follows recent efforts to manage debt maturity profiles and improve market functioning. Prior buyback operations were smaller in scale, with limited immediate impact on risk assets. Analysts note the timing coincides with heightened demand for liquidity amid shifting monetary policy expectations.
Markets reacted swiftly, with Bitcoin leading gains among speculative assets as traders covered short positions. The broader risk-on sentiment also lifted equities and commodities.