Bitcoin Pushes Past $67K After US Treasury Doubles Bond Buyback Operations, VanEck Sees Late-Stage Drawdown

Bitcoin (BTC) jumped above $67,000 on Wednesday after the U.S. Treasury announced that it would at least double the size of its long-end bond buyback operations, a liquidity boost that pushed yields sharply lower as on-chain data indicated a market near a bottom.

The Treasury announced that it was increasing the maximum size of buyback operations for nominal coupon securities in the 10-year-to-20-year and 20-year-to-30-year sectors from $2 billion to at least $4 billion per operation. The change will be effective September 9 through November 4, covering the remainder of the current refunding quarter.

'All Roads Lead To BTC'

Analyst Will said on X on Wednesday that the Treasury was "intervening in unprecedented ways in the FX market" as interest payments and debt as a percentage of GDP both sat at record highs. “All roads eventually lead to $BTC,” he added.

Why Does It Matter?

US national debt stood at nearly $40 trillion, up $2.88 trillion from a year ago, according to data compiled by the government. Annual interest expense on publicly held debt now runs at roughly $1.11 trillion, with the average interest rate on marketable Treasury debt at 3.44% as of July. The 30-year yield had climbed above 5.3% earlier this month, its highest level in roughly 25 years, before retreating on Wednesday's buyback announcement.