Bitcoin News

Story: Bitcoin Surges 25% to $77K Following Treasury’s $14 Billion Bond Buyback Surprise

By Bruce Buterin

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What the Treasury Actually Did. The backdrop here matters. The 30-year Treasury yield had climbed to 5.

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The Pullback — and What Bessent Said. By August 20, things had already started reversing. Treasury Secretary Scott Bessent floated the…

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Not Quantitative Easing — But Close Enough to Fool the Market. There's been a lot of confusion about what this buyback actually is. It's not QE. Full stop.

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Bitcoin hit $77,000. A two-month high. And it got there fast — roughly 25% in a matter of hours after the U.S.

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That's a big number. And it came out of nowhere, at least for most traders.

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The backdrop here matters. The 30-year Treasury yield had climbed to 5.34%, the highest level since 2007, pushed up by a combination of global inflation fears and geopolitical…

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Right after the announcement, yields fell. The 30-year dropped to 5.184%. The 10-year slid six basis points to 4.66%. Bitcoin ripped higher.

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But the bond market didn't really buy it. Not for long.

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By August 20, things had already started reversing. Treasury Secretary Scott Bessent floated the idea of pushing buyback amounts even higher, and he tied current yield levels…

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The 30-year yield climbed back to 5.24%. The U.S. dollar recovered its losses. And Bitcoin? It fell back below $70,000, settling somewhere in the high-$60,000s.

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Some analysts read the Treasury move as tactical. August liquidity is thin. Bond shorts were crowded. The announcement caught a lot of people off guard at exactly the right moment.

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Read also: Hyperscale Data Sells 686 Bitcoin for $43M but Faces Dire Financial Crisis

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That distinction matters. It's probably why the initial market reaction faded so quickly. Traders priced in a liquidity injection, realized it wasn't quite that, and adjusted.

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And structurally, the challenges are still there. U.S. debt now exceeds $40 trillion. Fiscal deficits aren't shrinking.

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What it can do — and kind of did — is buy time. Temporarily stabilize the long end of the curve. Give markets a moment to breathe.

The Currency Analytics

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