Treasury's Bond Buyback Boosts Bitcoin to New Heights
Bitcoin made headlines on August 19 by surging past $68,000 in value after the US Treasury announced that it would double its long-term bond buyback operations. The move prompted a broad rally across cryptocurrency and precious metals markets.
The Treasury stated that it will increase liquidity assistance buyback operations for longer-dated nominal coupon securities from $2 billion per transaction to at least $4 billion from September 9, 2026 to November 4, 2026. This decision was seen as a positive development by market analysts and investors.
As soon as the news broke, stock markets reacted positively. Ethereum climbed 8.8% to trade at $2,084, Solana advanced 7% to $81.51, and XRP was up more than 6% to trade at $1.06. Meanwhile, gold climbed 3.5% to $4,487 per ounce, its highest price since June.
Famous economist Peter Schiff warned on Twitter that the Treasury is stepping in to buy long-term bonds that private investors no longer want, with the money ultimately created by the Federal Reserve. Bitcoin pushed briefly above its 200-day simple moving average at $69,031, a key long-term trend gauge. A sustained break above this level could indicate the end of the bear market and revival of a bullish trend, analysts said.