Bitcoin Loses $80,000 as Critics Swarm Treasury's $950 Billion Buyback Plan

Bitcoin (BTC) touched $80,000 on Monday, then handed the level straight back. Critics are lining up against the US Treasury plan that sparked the move.

The token traded near $78,835 at press time. The bond market had already run this exact play last week, and it did not hold.

What Pushed Bitcoin to $80,000

The Treasury General Account (TGA) is the government's checking account at the Federal Reserve. Tax receipts fill it. Treasury Secretary Scott Bessent has let it swell, with reports pegging the account near $950 billion.

Treasury's own daily cash statement showed $935.1 billion on August 20, the latest official reading. Two senior Treasury officials told CNBC that money could fund bond buybacks.

Treasury doubled those buybacks on August 19. Long-end operations rose from $2 billion to at least $4 billion each. The first lands on September 9, per the department's own announcement.

Traders liked the plumbing. Spending TGA cash does not grow the Fed's balance sheet. It just moves money into bank reserves. That reads as liquidity, and liquidity has been Bitcoin's fuel all month.

The Bond Market Already Round-Tripped This Trade

Treasury's own yield data tells the story. The 30-year yield hit 5.31% on August 17, its highest reading since 2007.