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

On September 5, 2026, Bitcoin experienced a sharp price increase after the US Treasury announced a significant boost in its bond buyback operations. The cryptocurrency market saw a general rise in asset prices, with Bitcoin gaining approximately 6%, Ethereum climbing by 8%, Solana surging 7%, and XRP increasing by about 4%. This rally was primarily driven by the substantial fall in US Treasury yields, which occurred following the Treasury's decision to double its bond buyback program, from a maximum of $2 billion per operation to at least $4 billion per operation.

The program is set to commence on September 9 and will continue until November 4, 2026. Analysts suggested that the Treasury's move, akin to "QE Lite," provided a liquidity signal that could bolster financial markets and potentially reduce inflation concerns. However, some experts, like Peter Schiff, argued that the government's intervention could increase federal interest costs and potentially lead to further rate cuts or quantitative easing.

Bitcoin's price reached around $68,500, breaking above the descending trendline and its three-month trading range, with key moving averages now acting as potential support. This technical development, coupled with the surge in demand for risk assets, could signal a bullish trend for Bitcoin in the short term. The rally also triggered significant liquidations, with over $1.3 billion in crypto derivatives positions liquidated within an hour, primarily involving Bitcoin trading pairs.