Bitcoin Skyrockets 20% as U.S. Treasury's Bond Buyback Program Sparks Market Shift

The U.S. Treasury's decision to expand its bond buyback program has triggered significant market shifts, leading to Bitcoin recording its largest weekly gain since March 2024.

The Treasury's move aimed to improve liquidity, boosting risk appetite among investors. This led to a surge in demand for digital assets, with Bitcoin prices rising over 20% for the week.

Spot ETFs saw net inflows of $2.6 billion, setting a new weekly record since last October. According to Woofun AI, this influx of capital directly reflects institutions' keen capture of short-term liquidity improvements, driving prices out of the bottom range.

QCP Capital clarified that the Treasury's move is not quantitative easing (QE), but rather an effort to optimize debt maturity structure and improve liquidity management. However, despite the strong rebound, macro uncertainty persists due to the complex interplay among Federal Reserve policy, global economic conditions, and U.S. Treasury operations.