Bitcoin Surges to Three-Month High on US Treasury Liquidity-Boosting Move

The Bitcoin (BTC) price surged to a three-month high after the US Treasury announced plans to double its maximum long-end liquidity-support buybacks from $2 billion to at least $4 billion per operation.

This move, which will run from September 9 through November 4, 2026, is seen as support for long-dated Treasury liquidity and has revived concerns about fiscal pressure, a weaker US dollar, and currency debasement.

The market interpreted this news as a boost to alternative assets, with both Bitcoin and gold rising in value. Demand through US spot Bitcoin ETFs also strengthened, with Farside Investors' daily data showing six consecutive sessions of net inflows between August 17 and 24, totaling approximately $2.26 billion.

However, some analysts warn that the rally may be difficult to sustain once forced buying ends. Three scenarios have been proposed for the next few months: a base case of $75,000 to $90,000, a bull case of $90,000 to $100,000, and a bear case of $65,000 to $72,000.

The Federal Reserve's upcoming meetings in September and December will also be crucial in determining the direction of the market. Softer inflation, lower yields, or a less restrictive policy outlook could improve conditions for risk assets, while unexpected policy delays or restrictions could weaken sentiment.