Treasury Liquidity Boost Triggers Historic Crypto Rally
The Bitcoin price surged as much as 8% and Ether jumped by around 18-20% over the past 24 hours, fueled by a combination of events. The Treasury Department announced that it would at least double its buyback operations for longer-dated Treasury securities from $2 billion to $4 billion per operation, effective September 9 through the current refunding quarter. This move was seen as a liquidity backstop for the broader Treasury market, boosting risk assets including crypto.
The SEC also proposed a new rule called Regulation Crypto Assets, which would create two exemptions allowing crypto issuers to raise up to $5 million over four years or $75 million a year under lighter disclosure requirements. Additionally, US President Donald Trump hosted crypto and technology executives at the White House, urging Congress to advance a fair version of the Digital Asset Market Clarity Act.
The combination of these events triggered a short squeeze, with Bitcoin nearing $70,000 and Ether surpassing $2,250. The rally cleared a key technical level near $66,600, opening a path towards $76,000 if it holds. However, some analysts warn that the move may be temporary, as Ether's 18% surge came on a liquidity and policy headline rather than anything specific to Ethereum.