Bitcoin Tops $80k as US Treasury Buybacks Lift Assets

Key Moments

• Bitcoin (BTC) trades above $80,000 on Tuesday, supported by risk-on sentiment and a bullish technical backdrop.
• US Treasury buyback operations have recently doubled to $4 billion, with estimates suggesting $80 billion to $200 billion could be available for larger interventions.
• Aerodrome Finance (AERO) and Virtuals Protocol (VIRTUAL) continue to outperform, extending rallies above key moving averages and Fibonacci levels.

Macro Backdrop: Treasury Actions and Scarce Asset Performance

Bitcoin (BTC) advances further above $80,000 on Tuesday, buoyed by persistent risk-on sentiment across markets. The move comes as investors react to signals that the US Treasury is actively addressing elevated yields in the long-dated bond segment, a dynamic that has been supportive for scarce assets.

According to a recent post on X by The Kobeissi Letter, the US Treasury is seen intensifying efforts to manage its roughly $40 trillion debt load and alleviate pressure in the bond market. Following a recent increase in buyback operations to $4 billion, the post indicates that additional measures under consideration include selling more short-term debt and removing long-dated bonds, among other options.