Treasury's Bond Buyback Boost Sends Bitcoin, Ethereum Soaring
The US Treasury's decision to double its long-term bond buyback operations has sent shockwaves through financial markets, pushing Bitcoin, Ethereum, and other cryptocurrencies sharply higher. The move, which takes effect on September 9 and runs through November 4, 2026, will see the department increase liquidity support buyback operations for longer-dated nominal coupon securities from $2 billion to at least $4 billion per operation.
Peter Schiff, a well-known critic of Bitcoin, warned that this move will send 'inflation soaring.' He argued that the Treasury is stepping in to buy long-term bonds that private investors no longer want, with the money to fund those purchases ultimately created by the Fed. This, he claimed, makes it harder for the Fed to raise interest rates.
Markets immediately reacted to the news, with Bitcoin surging 6% to $68,500, clearing a key resistance level and breaking above its three-month range ceiling. Ethereum and XRP also rose, gaining 8% and 4%, respectively. Gold prices jumped 3.5% to $4,487 per ounce as investors sought safe-haven assets.