Treasury Debt Buyback Sparks Hopes of Second Crypto Rally

The US Treasury has begun executing its government debt buyback program, injecting liquidity into the market and sparking hopes for a second rally in Bitcoin and XRP.

The program's weekly cap is $14.5 billion, with a maximum execution size per Treasury session potentially reaching $16.5 billion, according to blockchain outlet U.Today.

Markets are focused on September 9, when the Treasury plans to double the per-round cap for long-term buybacks to $4 billion from $2 billion, targeting long-dated Treasuries with maturities of 10 to 30 years.

As a result, some traders believe that the influx of funds could trigger a breakout in crypto prices, particularly if major dealers show buying interest on September 9. This could lead to forced liquidation of short positions and potentially propel Bitcoin towards retesting its near-term peak.