Treasury Liquidity Injection Sparks Expectations of Second Round of Crypto Growth
The U.S. Treasury Department's government debt buyback program is set to enter its active phase on September 7, 2026, with a weekly limit of $14.5 billion and a maximum volume of $16.5 billion.
This significant liquidity injection has sparked discussion among financial markets about the potential for a second round of cryptocurrency market growth, particularly for Bitcoin and XRP.
The Treasury plans to remove approximately $38.25 billion worth of bonds from the market in September, while the Federal Reserve will allocate up to $2.122 billion to purchases of short-term Treasury bills.
Besides stabilizing yields, this injection is expected to fuel a breakout from prolonged trading ranges and potentially trigger a short squeeze for Bitcoin, which is currently trading just below the psychological $80,000 level.