Key facts
- Bitcoin's price surged past $68,000, nearing $69,000.
- The U.S. Treasury announced it will at least double its long-term debt buyback program.
- Increased Treasury buybacks are expected to boost market liquidity.
- Other major cryptocurrencies like Ethereum also saw significant gains.
- The SEC released a proposed regulatory framework for crypto startups.
- Odds of a Federal Reserve rate hike this year have decreased.
Bitcoin's price surged past $68,000, nearing $69,000, driven by the U.S. Treasury's announcement to at least double its long-term debt buyback program. This move, set to increase buybacks from $2 billion to at least $4 billion per operation starting September 9th, is expected to boost market liquidity and potentially act as a bullish catalyst for Bitcoin and the broader crypto market. The announcement comes as 30-year Treasury yields hit a 19-year high, and yields have since fallen. The market views increased buybacks as a form of quantitative easing amid inflation fears. Other cryptocurrencies, including Ethereum, Solana, and XRP, also saw notable gains. Additional bullish catalysts include a planned White House crypto meeting with President Donald Trump and the SEC's release of a proposed 'Reg Crypto' framework aimed at providing regulatory clarity. Furthermore, the decreasing odds of a Federal Reserve rate hike this year, now at 48% according to Polymarket, provide further positive sentiment for the crypto market.