Bitcoin Rally Driven by Treasury Buybacks and ETF Inflows

Last week's sharp rally in Bitcoin was driven by several key factors, according to QCP Capital. The U.S. Treasury announced it would increase the size of each long-bond buyback operation to at least $4 billion from a previous cap of $2 billion, starting September 9. This move supported liquidity and caused long-term Treasury yields to fall.

The announcement also led to a weakening dollar, which lifted both Bitcoin and gold. QCP noted that position adjustments and short covering initially accelerated the rally, while spot buying later strengthened. The combined net inflows into U.S. spot Bitcoin and Ether ETFs totaled about $2.6 billion last week, the largest weekly net inflow since October 2025.

This week, investors are focused on several key market catalysts. The U.S. July PCE price index and the revised second-quarter gross domestic product reading will be closely watched for clues on the macroeconomic backdrop. Nvidia's earnings will also provide insight into whether the artificial intelligence investment cycle is continuing, while Federal Reserve Chair Wash's first keynote speech at Jackson Hole could offer signals on monetary policy direction.