US Treasury's 'Not-QE' Boosts Bitcoin Prices, Analysts Focus on Liquidity Tailwind

A recent move by the US Treasury has contributed to a surge in Bitcoin prices. The department's plan to expand long-dated bond buybacks, without labeling it as quantitative easing (QE), has been seen as a liquidity tailwind for Bitcoin.

According to Geoff Kendrick of Standard Chartered, the move is exactly what Bitcoin loves and could lead to a technical confirmation at $65,500. The expansion of long-dated bond buybacks includes 10- to 20-year and 20- to 30-year coupons, running from September 9 to November 4.

Bitcoin prices have climbed more than 6% to nearly $69,000 following the announcement. However, Kendrick's thesis is conditional, requiring Bitcoin to hold above $65,500 for the cycle low interpretation to remain intact.