Treasury Buyback Surprise Sends Bitcoin Price Soaring Above $69,000

Bitcoin's price surge above $69,000 was largely driven by a surprise move from the US Treasury, which doubled its planned buybacks of long-dated government debt. This decision led to lower bond yields and forced roughly $1.4 billion in crypto short positions out of the market within four hours.

The 30-year Treasury yield dropped toward 5.19%, while the 10-year yield fell toward 4.65%. This easing of long-end yields reduced pressure on risk assets, including Bitcoin, which was already competing with bonds for capital.

However, not everyone is convinced that this move signals a shift in the Fed's stance or an end to tightening. The minutes from the July meeting revealed that several officials favored a 25-basis-point hike and many thought additional tightening would be necessary if inflation failed to come down.