Bitcoin(CRYPTO: BTC) jumped 6% after the US Treasury announced it would double its long-term bond buyback operations, sending gold surging and crypto sharply higher across the board.
What the Treasury Actually Announced
According to a Treasury press release, the department will increase liquidity support buyback operations for longer-dated nominal coupon securities from a maximum of $2 billion per operation to at least $4 billion per operation.
The change takes effect September 9 and runs through November 4, 2026.
The announcement sent markets sharply higher within hours. Bitcoin(CRYPTO: BTC) jumped 6%, Ethereum(CRYPTO: ETH) surged 8%, Solana(CRYPTO: SOL) spiked 7%, and XRP(CRYPTO: XRP) gained 4% on the session.
Why Schiff Says This Sends Inflation Higher
Peter Schiff posted on X that the Treasury is stepping in to buy long-term bonds that private investors no longer want, with the money to fund those purchases ultimately created by the Fed.
“That’s why gold is already up $125 on the news,” Schiff wrote.
In a follow-up post, Schiff added that funding the buybacks through short-term debt issuance makes it harder for the Fed to raise rates, since it drives up federal interest expense and widens the deficit.
The result, he argued, is growing pressure for rate cuts and quantitative easing even as inflation rises.
Why Is Crypto Rallying on the News?
According to Reuters, the Treasury announcement knocked 30-year yields sharply lower from near 19-year highs while the dollar index fell 0.8%.
Gold surged 3.5% to $4,487 per ounce, its highest level since June 4, as markets immediately priced in the liquidity signal.
Falling yields and a weaker dollar have historically pushed capital into hard assets and risk assets like crypto.
Traders are reading the buyback program as QE Lite, a sign that the Fed’s ability to keep tightening is now constrained, the same backdrop that fueled Bitcoin’s biggest prior rallies.
TD Securities wrote in a note cited by Reuters that Treasury liquidity support, a Fed willing to look through an energy shock, and a growing stagflation narrative should all push real rates lower, a setup that favors gold and crypto alike.
Where Bitcoin Stands Technically
BTC blasts to $68,500 Wednesday, clearing the descending trendline, and the three-month range ceiling in a single session.
The 20-day and 50-day EMAs now sit firmly below as rising support. The next meaningful ceiling is the 200-day EMA at $71,468.
Key levels for BTC:
- $65,800 — prior resistance, must hold as new support
- $71,468 — 200-day EMA, next upside target
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