Treasury Buyback Boost Sends Crypto Assets Soaring

The US Treasury's decision to double its buyback cap to $4B per operation starting September 9 has sent shockwaves through the market, boosting crypto assets broadly. By absorbing more of its own debt, the government effectively reduced long-dated yields, loosening financial conditions that had been weighing on tech stocks and tokens.

Bitcoin responded with a 5.8% gain in 24 hours, pushing past $68K, while Ethereum outpaced it with a 9% daily increase, reaching above $2K. Solana traded near $82 with a 6.5% daily move, and XRP held above $1.

The Treasury's buyback program has been seen as a positive development for crypto markets, which have historically been sensitive to macroeconomic conditions. A weaker dollar, coupled with the SEC's signals on developing a digital asset regulatory framework, further contributed to the rally.