Treasury Bond Purchase Expansion Drives Bitcoin Back Above $80K
The price of Bitcoin reclaimed $80,000 on August 25, following an announcement by the U.S. Treasury that it would double its purchases of long-dated bonds. This move is seen as a signal that government money creation will continue, according to Anthony Pompliano, CEO of Professional Capital Management.
Pompliano argues that abundant dollars increase the premium on scarce assets, placing Bitcoin's fixed 21 million supply at the center of his long-term thesis. He maintains a $1 million Bitcoin target and believes that monetary policy, rather than new crypto legislation, is driving Bitcoin's valuation.
The analyst sees the Treasury's decision as evidence that government money creation will continue, saying Bitcoin responded aggressively because investors recognize this dynamic. Pompliano framed the move as another data point in a broader currency argument, treating Bitcoin's rally less as an isolated market event and more as a reflection of policy conditions that support the asset over time.