Treasury Buyback Spikes Crypto Prices Amid Short Squeeze

The U.S. Treasury's recent $14 billion buyback operation triggered a significant short squeeze in crypto derivatives, estimated to be around $3.5 billion.

This move led to Bitcoin jumping by approximately 25% to a two-month high of over $77,000 within hours of the announcement on August 19.

The Treasury's decision came as the 30-year Treasury yield hit its highest level since 2007, amid concerns over inflation and the U.S. fiscal trajectory.

Treasury Secretary Scott Bessent stated that the move would increase buyback sizes even further, potentially beyond $4 billion per issue.