Treasury Buyback Plans Spark Bullish Sentiment for BTC
U.S. Treasury Secretary Scott Bessent said that the government's bond buyback program could exceed $4 billion per operation, a move that helped drive Bitcoin (BTC) towards its highest level since June.
In an interview with CNBC on Thursday, Bessent noted that the figure of $4 billion was set just a day earlier as a ceiling for the buybacks, but he made it clear that this was a floor, not a ceiling. 'I would note that it could be more than the 4 billion per issue,' he said.
The Treasury doubled its buyback cap for longer-dated debt from $2 billion to at least $4 billion per operation on Wednesday, targeting securities maturing in 10 to 30 years starting September 9. Bessent framed the move as an effort to restore trading depth in a market he called thinly traded.
The Treasury Secretary also pointed out that record government debt does not by itself signal distress, citing fiscal consolidation through 2025 and expected tariff revenue holding steady into 2026.