Treasury Buyback Failure Fuels Medium-Term Bitcoin Catalyst
The outlook for Bitcoin has become more uncertain after Friday's inflation print showed higher-than-expected core inflation. This could limit its immediate upside and potentially keep prices below $80,000.
According to CoinShares' Head of Research, James Butterfill, the firmer inflation reading increases the probability of tighter Federal Reserve policy, which is bearish for Bitcoin in the short term.
However, Butterfill notes that the U.S. Treasury's bond buyback program has so far failed to bring down long-end yields, and if this trend continues, it could create pressure on Treasury Secretary Scott Bessent to escalate to a larger buying program.
This scenario is seen as potentially bullish for Bitcoin in the medium term, as it would feed into the debasement narrative that has supported both Bitcoin and gold. The report notes that 'the result is therefore a somewhat unusual policy mix for Bitcoin.'