Treasury Buyback Surprise Triggers $60K+ Bitcoin Rally
A surprise US Treasury decision to double long-term bond buybacks sent shockwaves through markets, sparking a rally in Bitcoin and other assets. The move dropped yields and boosted risk assets like BTC, which surged over 5% toward $60,000. Lower long-term yields tend to support risk assets and high-beta hedges, especially when framed as a response to rising US interest-expense and debt concerns.
A short squeeze in derivatives followed the Treasury announcement, with over $1-2 billion in crypto shorts liquidated within an hour, and total 24-hour liquidations around $1.5-2.7 billion. This amplified the move, making it sharper but also more fragile if new spot demand does not sustain it.
Supportive regulatory and political developments have strengthened the bullish narrative, including the SEC's proposed 'Regulation Crypto Assets' framework, which creates two exemptions for crypto fundraising and includes a conditional safe harbor. The White House has also hosted a 'Crypto Summit' where President Trump met with major crypto company CEOs and market regulators, discussing potential US purchases of Bitcoin and other cryptocurrencies.