Bitcoin Soars Past $70,000 on Treasury Buyback Announcement

The US Department of the Treasury's announcement to double its liquidity-support buyback operations for longer-dated coupon securities sent shockwaves through markets, with Bitcoin surging past $70,000.

The move, which takes effect September 9 and covers 10-to-30-year Treasury bonds, effectively eases borrowing costs and injects cash into the market.

Markets read the buyback expansion as a liquidity signal, prompting traders to rotate into Bitcoin as a hedge against renewed monetary easing. Gautam Chhugani, a strategist at Bernstein, tied the move directly to the Treasury decision, stating: 'The strong trigger in bitcoin was driven by Treasury's move to buyback bonds at the longer end of the yield curve.'

As Bitcoin broke above resistance near $70,000, short sellers who had built up positions during the six-week range were caught offside. Automated liquidation engines began force-closing those bets as the price climbed, resulting in a record short squeeze that saw traders lose $3 billion in a single 24-hour window.

The Treasury announcement coincided with renewed political attention on digital assets, including President Donald Trump's public urging of Congress to pass the CLARITY Act. This regulatory tailwind added momentum to the rally, which also lined up with a White House meeting between Trump and crypto industry leaders.