Treasury Bond Buybacks Send Bitcoin Price Soaring to Near-Record High

Bitcoin surged to nearly $79K after Treasury officials announced they would expand buybacks for long-dated bonds, boosting demand and lifting the price by 7.89% in a single day.

The move provided a macro trigger that combined with renewed institutional interest in US spot Bitcoin ETFs to drive the gains.

BlackRock's IBIT absorbed $502.99 million of the $606.29 million total inflows, more than four-fifths of the daily amount, and Fidelity's FBTC followed with $64.74 million.

The Treasury decision allowed for a maximum liquidity-support buyback of at least $4 billion per operation, starting September 9, covering securities from 10-year to 30-year nominal coupons.