US Treasury tripled bond buyback liquidity support to $6B, but Bitcoin remained flat amid deteriorating macro conditions and rising yields, unlike an earlier similar move that drove BTC from $65K to $80K.
Macro & Markets ·
The US Treasury expanded its liquidity-support program for longer-dated government bonds, raising buybacks to $6 billion. Unlike a prior Treasury intervention in August that corresponded with Bitcoin climbing from $65K to $80K, this announcement produced no upward movement in Bitcoin's price, which instead moved sideways or lower.
The divergence stems partly from market timing. The August initiative caught traders off-guard, triggering a repricing of risk assets including Bitcoin and gold. This time, the Treasury's expanded commitment lacked novelty; participants had already priced in the shift. Additionally, broader economic headwinds—mounting oil prices and inflation anxieties—are driving Treasury yields higher, a dynamic that works against the stimulus intent of the buyback expansion.
The core question remains whether additional Treasury support for the bond market can regain traction with risk assets if macroeconomic fundamentals fail to stabilize. Current yield levels and persistent cost pressures suggest that the policy lever alone may lack sufficient force to reshape Bitcoin and equities until inflation concerns ease.