XRP Soars 20% as US Treasury's Bond Buybacks Send Crypto Prices Skyrocketing

US Treasury's decision to double bond buybacks has sent shockwaves through the crypto market, pushing XRP up over 20% in a single day. This move has catapulted XRP into fifth place by market value, surpassing USDC with a total worth of $77.47 billion.

The rally began on August 19, when the US Treasury announced it would double its long-end buyback operations from September 9 through November 4, from $2 billion to at least $4 billion per operation. This move pulled money out of riskier assets like crypto and into bonds with higher yields.

As a result, about $1.44 billion in short positions were liquidated, rising to roughly $3.3 billion by today, forcing prices higher. Every major cryptocurrency is now rising, with XRP leading the majors at 20.7%, while Bitcoin cleared $72,000 for the first time since early June to gain 10.6%.

XRP has reclaimed its previous resistance levels and is now trading above the $1.20 ceiling that capped it in June and July. However, XRP's signals still say caution, with its relative strength index crossing above 50, but needing to clear 60 to confirm a genuine buy signal.