Ethereum Rises By 11% On ETF Inflows, US Treasury Liquidity Signal

Ethereum Rises by 11% on ETF Inflows, US Treasury Liquidity Signal

Ethereum (ETH) extended its rally, rising 11.07% to $2,321.00, significantly outperforming Bitcoin’s +6.41% move, driven primarily by a macro liquidity spark that ignited institutional buying and a massive short squeeze.

With more than $36 billion in transaction value over the last 24 hours in the crypto exchange, Ethereum recorded a significant jump of 90% in trading volume on Thursday.

Traders said the key driver of the momentum was a surprise U.S. Treasury policy shift, which doubled long-term bond buybacks, weakening the dollar and boosting risk assets like Ethereum.

The U.S. Treasury announced on Aug. 19 it would double its long-dated bond buyback operations to at least $4 billion each, a move interpreted as improving market liquidity.

This weakened the U.S. dollar and lowered long-term yields, prompting capital to rotate into higher-beta crypto assets like Ethereum.

The rally was ignited by a traditional finance policy shift, underscoring crypto’s growing sensitivity to macro liquidity conditions.

The Treasury’s buyback program is scheduled to run until Nov. 4, 2026; its continuation will influence the macro backdrop.