Bitcoin Surges 6% to 11-Week High on Treasury Buyback Doubling
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- Bitcoin spiked 6% to $69,749 on the day, its highest level since June 2, following the US Treasury's announcement that it would at least double the maximum size of debt buyback operations from $2 billion to $4 billion starting September 9.
- US 30-year bond yields fell 9 basis points to 5.19% on the news, after hitting their highest level in nearly 20 years on Tuesday, joining US stocks in a broad risk-asset rally.
- Bitfinex told followers that the Bitcoin rebound is "unfunded," noting that stablecoin supply on exchanges has decreased by $14 billion since May — dry powder waiting on the sidelines that has not yet been deployed.
- CryptoQuant's Stablecoin Supply Ratio rose from 9.82 to 11.69 since June 30, with a higher reading indicating stablecoin liquidity is leaving exchanges and tightening conditions.
- Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, pushed back on the bullish framing, stating the buyback "is NOT a debt paydown, it is just a rearrangement of the maturity schedule of Treasuries."
- US national debt is approaching the $40 trillion milestone, with interest payments reaching $1.4 trillion over the past 12 months — triple the 2020 figure, according to The Kobeissi Letter citing Bank of America data.
Why it matters: The Treasury's buyback expansion pulled 30-year yields down 9bps and propelled Bitcoin 6% higher, but the structural support is thin: stablecoin dry powder has shrunk $14 billion since May, and Boockvar's insistence that this is a maturity reshuffle rather than real liquidity injection means the rally may rest on technical Treasury plumbing rather than fundamental risk appetite.
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