Bitcoin Soars Above $80,000 Amid US Treasury Bond Buyback Plans

Bitcoin has surged to over $80,000 as the US Treasury Department weighs using its massive cash pile to fund bond buybacks. The Treasury General Account, which holds roughly $940 billion, could be tapped to finance expanded purchases of government debt.

The move comes as the US national debt has surpassed $40 trillion and interest costs are rapidly increasing. The pressure on Treasury's liquidity-support measures was exacerbated by a recent sharp shift in response to rising borrowing costs. The 30-year Treasury yield had climbed as high as 5.337% before falling, but remains around 5.24%.

Treasury Secretary Scott Bessent said that purchases could rise beyond the new $4 billion level, and that the operations are an attempt to improve liquidity in parts of the Treasury market strained by thin summer trading and heavy corporate issuance.