Bitcoin's 27% Surge Faces First Test Amid Treasury Liquidity Support

The Bitcoin price surged over 27% in just three weeks, reaching an all-time high of $81,255 on August 24. However, this rapid ascent has left many wondering if it's a genuine breakout or a mechanical short squeeze.

The Treasury Buyback Tweak That Repriced $280 Billion of Crypto Market Cap

On August 19, the U.S. Treasury announced that it would at least double its liquidity support buyback operations for longer-dated government bonds, raising the cap from $2 billion per operation to at least $4 billion. This move was seen as a response to strong dealer demand in existing operations rather than a shift in debt management policy.

The market reacted quickly, with Bitcoin jumping roughly 25% to a two-month high above $77,000 within hours of the announcement. Crypto market capitalization added approximately $280 billion in twenty-four hours.