Bitcoin Surges Past $78K on Treasury's $1T Cash Injection Plans

Bitcoin's price has broken above $78,000 for the second time this month, despite the US Treasury's plans to ramp up its buying of longer-dated government debt. The sudden jump came after Treasury Secretary Scott Bessent announced that he'd like to tap into the government's nearly $1 trillion cash cushion to fund the bond-buyback program.

The program aims to maintain a focus on economic fundamentals and keep the market in equilibrium, according to Bessent. The first buyback is scheduled for September 9, with the Treasury increasing its purchases of less-liquid older Treasury securities from $2 billion to $4 billion or more.

The funding for the program will come mainly from additional short-term bills by the Treasury, but it's also possible that they may access their nearly $1 trillion cash reserves in the Treasury General Account (TGA). However, no figures have been given on how much might be deployed or when such a move may occur.