Bitcoin price hits 11-week high as US Treasury doubles debt buyback size
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- Bitcoin spiked 6% on the day to $69,749 on Bitstamp, its highest level since June 2, as markets reacted to a US government liquidity move.
- The US Treasury announced plans to at least double maximum debt buyback operations from $2 billion to $4 billion per operation, effective September 9, to provide greater liquidity support in longer-dated nominal sectors.
- The US 30-year bond yield dropped 9 basis points to 5.19% after hitting a nearly 20-year high on Tuesday, while the S&P 500 opened higher alongside Bitcoin.
- Bitfinex warned that stablecoin supplies on exchanges have fallen $14 billion since May, stating "Until stablecoin supply turns, the rally stays unfunded," and CryptoQuant's Stablecoin Supply Ratio has risen from 9.82 to 11.69 since June 30.
- Peter Boockvar of One Point BFG Wealth Partners clarified that the buyback is "NOT a debt paydown, just a rearrangement of the maturity schedule of Treasuries," as US national debt approaches $40 trillion with $1.4 trillion in interest payments over the past 12 months.
Why it matters: The Treasury buyback doubles as a structural liquidity injection, pulling long bond yields off multi-decade highs and lifting risk assets including Bitcoin to multi-month peaks — but the rally is running on thin stablecoin rails, with $14 billion in exchange dry powder depleted and Bitfinex flagging the move as fundamentally "unfunded" despite the price surge.
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