US Treasury Buyback Boost Sends Bitcoin Soaring Above $69,500
The US Treasury's announcement to double the planned buybacks of long-dated government debt has had a significant impact on the market, causing Bitcoin and Ethereum prices to surge.
According to data from CryptoSlate, Bitcoin climbed from an intraday low near $64,100 to over $69,000 before retracing to around $68,000. Ethereum also rose as high as $2,100, breaking above $2,000 for the first time since June.
The sudden price increase punished traders who were short on Bitcoin and Ethereum, with over $400 million in crypto positions being liquidated within one hour, according to CoinGlass data.
Andre Dragosch, head of research at Bitwise Europe, noted that the Treasury's action shows 'the system is showing first signs of cracking' as policymakers respond to pressure in long-duration government debt. He added that Bitcoin is a canary in the macro coal mine and anticipates changes in financial conditions.