Bitcoin, Ethereum, XRP Explode Over 6% Higher: Treasury's Move Will Send 'Inflation Soaring,' Peter Schif

Bitcoin (CRYPTO: BTC) jumped 6% after the US Treasury announced it would double its long-term bond buyback operations, sending gold surging and crypto sharply higher across the board.

What the Treasury Actually Announced

According to a Treasury press release, the department will increase liquidity support buyback operations for longer-dated nominal coupon securities from a maximum of $2 billion per operation to at least $4 billion per operation. 

The change takes effect September 9 and runs through November 4, 2026.

The announcement sent markets sharply higher within hours. Bitcoin (CRYPTO: BTC) jumped 6%, Ethereum (CRYPTO: ETH) surged 8%, Solana (CRYPTO: SOL) spiked 7%, and XRP (CRYPTO: XRP) gained 4% on the session.

Why Schiff Says This Sends Inflation Higher

Peter Schiff posted on X that the Treasury is stepping in to buy long-term bonds that private investors no longer want, with the money to fund those purchases ultimately created by the Fed. 

“That’s why gold is already up $125 on the news,” Schiff wrote.

In a follow-up post, Schiff added that funding the buybacks through short-term debt issuance makes it harder for the Fed to raise rates, since it drives up federal interest expense and widens the deficit.