Bitcoin Surges Amid Treasury-Fed Standoff and Jackson Hole Keynote
Bitcoin has recorded its best weekly gain since March 2023, rising from $63,500 to around $81,250. This surge occurred as the U.S. Treasury and Federal Reserve faced a standoff over long-term borrowing costs.
The tension began on August 19, when the Treasury announced it would double the maximum size of its buyback operations for longer-term government bonds, from $2 billion to at least $4 billion per operation. The 30-year Treasury yield initially fell but then climbed back to 5.247% within 24 hours.
Two senior Treasury officials told CNBC that the department could use its General Account, which has grown to about $950 billion, to help finance the larger bond buybacks. However, much of this account is already set aside for other obligations.