Treasury Buybacks Send Bitcoin Above $80,000

Bitcoin's recent surge above $80,000 has been linked to the U.S. Treasury's decision to increase its bond buyback operations by at least 100%. The expanded program, which will run from September 9 through November 4, raises the maximum size of specific long-dated bond buybacks from $2 billion to no less than $4 billion per transaction.

According to BitMEX co-founder Arthur Hayes, this move is expected to inject new dollar liquidity into markets and drive up the prices of older government securities. As a result, reduced yields will enhance the appeal of risk-oriented assets such as Bitcoin.

Hayes compared the Treasury's strategy to former Secretary Janet Yellen's approach in late 2023, when increased Treasury bill issuance allegedly redirected money-market funds toward tradable securities.

The digital asset touched an intraday peak above $81,000, representing its most substantial weekly gain in recent months. The upward movement was also driven by U.S.-listed spot Bitcoin exchange-traded funds attracting approximately $517 million in net inflows on August 19 alone.