Why is Bitcoin rising after the US Treasury doubled bond buybacks? What it means for BTC, crypto and inflation | Hindustan Times

Bitcoin jumped sharply after the US Treasury announced a major increase in its bond buyback operations. BTC rose about 6% after the announcement, while the broader crypto market also moved higher. The move came as investors saw the Treasury action as a fresh liquidity signal for financial markets.

The US Treasury is doubling the size of its long-term bond buybacks. The Treasury said it 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, according to a Treasury press release.

US Treasury bond buybacks

The new buyback size will take effect on September 9 and continue through November 4, 2026. The program is designed to provide more liquidity and support trading in the US government bond market. Markets reacted almost immediately. Bitcoin climbed about 6%, while Ethereum gained 8%, Solana rose 7% and XRP added about 4%.

Bitcoin price jumps

The main reason behind the crypto rally was the sharp fall in US Treasury yields. The Treasury announcement pushed the 30-year Treasury yield lower from near a 19-year high, Reuters reported. The US dollar also fell, with the dollar index dropping about 0.8%. A weaker dollar and lower bond yields can make assets like gold and Bitcoin more attractive to investors.