XRP Soars on Treasury Buyback Boost

XRP's price surge has set it up for its strongest weekly gain in over two years. The token rose to intraday levels between $1.30 and $1.60, a sharp reversal from its sub-$1 level last week.

The Treasury's decision to double the size of its long-term bond buyback operations is driving the rally. By purchasing its own bonds at a faster clip, the government is reducing supply and increasing demand, causing prices to rise and yields to fall.

The 30-year Treasury yield retreated from a 19-year high of 5.337%, making room for risk assets like XRP to gain traction. Market participants are labeling this move 'QE Lite,' comparing it to the Federal Reserve's old quantitative easing playbook, but with a different mechanism.

A record short squeeze also contributed to the rally, with over $3 billion in crypto short positions liquidated during the surge. Whale accumulation of XRP accelerated during the rally, with large holders adding to their positions rather than selling into strength.