Bitcoin Soars 21% in Three Days Amid Treasury's Bond Buyback Boost
Bitcoin's recent price surge can be attributed to the US Treasury's decision to double its bond market buybacks to at least $4 billion per operation. This move, announced by Treasury Secretary Scott Bessent on August 19, sparked a significant increase in Bitcoin's price, with the cryptocurrency gaining more than 5.4% in three consecutive days.
The best three-day period for Bitcoin came between August 19 and 21, during which it secured a 21% gain. This surge can be contrasted with the market's reaction to the SEC's proposed pro-crypto framework on August 18, which had little impact on Bitcoin's price. The cryptocurrency even dropped 3% on August 28 when Federal Reserve Chairman Kevin Warsh reiterated his focus on inflation at Jackson Hole.
The Treasury's move is seen as a key factor in Bitcoin's price increase, with investors seemingly prioritizing fiscal policy over monetary policy in the short term. This sentiment will be put to the test later this month, when the expanded bond buybacks kick off on September 9 and the Fed announces its decision on interest rates on September 16.