Bitcoin price hits 11-week high as US Treasury doubles debt buyback size
Bitcoin joined US stocks in a broad rally after the US Treasury announced that it was at least doubling the amount of its debt buyback operations from September.
Bitcoin's price reached an 11-week high on Wednesday as the US Treasury announced it would at least double its debt buyback operations from $2 billion to $4 billion per operation, starting September 9. Bitcoin surged to $69,700 on Bitstamp, marking a 6% increase in a single day. The US 30-year bond yield fell from its 20-year high to 5.19%, down 9 basis points.
The Treasury's move aimed to provide greater liquidity support in longer-dated nominal sectors, with market participants consistently showing strong sponsorship. Analysts noted that rising corporate debt, particularly in the AI sector, contributed to the yield surge. The announcement came as the US national debt neared the $40 trillion mark, with interest payments on the debt reaching $1.4 trillion in the past year, tripling since 2020.
Stablecoin liquidity on exchanges had decreased by $14 billion since May, potentially keeping Bitcoin's rebound in check until stablecoin supplies return.
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