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U.S. Treasury Secretary Scott Bessent told CNBC on Thursday that the government’s bond buyback program could grow.
He noted that there is every indication that the buybacks could exceedthe $4 billion per operation ceiling it set just a day earlier, a signal that helped drive Bitcoin (BTC) toward its <a href="https://cryptoz7.com/liquidations-hit-highest-level-since-oct-10-crypto-market-crash/” title=”Liquidations hit highest level since Oct. 10 crypto market crash”>highest level since June.
Bessent Leaves the Door Open on Size
Treasury doubled its buyback cap for longer-dated debt from $2 billion to at least $4 billion per operation on Wednesday, targeting securities maturing in 10 to 30 years starting September 9.
Speaking a day later, Bessent made clear that figure was a floor, not a ceiling.
“I would note that it could be more than the 4 billion per issue.”
Bessent declined to attach a specific number, saying the eventual size will depend on market conditions. He framed the move as an effort to restore trading depth in a market he called thinly traded, pointing to heavy corporate bond issuance and what he described as poor liquidity in the 30-year sector.
Why Bond Buybacks Moved Crypto
Bitcoin’s link to Treasury buybacks runs through yields and liquidity, not direct policy. The 30-year yield had touched its highest level since 2007 before Wednesday’s announcement pulled it sharply lower, and Treasury’s buyback move eased broader financial conditions just as risk appetite was already improving.
Lower long-duration yields reduce competition for investor capital, a dynamic that tends to support assets like Bitcoin and gold alike, as gold’s own rally this week showed.
Bessent also pointed to the U.S.-Iran conflict as a temporary distortion on yields, saying markets would normalize once that situation resolves. His comments on Thursday briefly pulled yields lower again, though the effect faded and the 10-year yield ended the session higher.
Bitcoin trades near $72,712 at the time of writing, up 5% over the past 24 hours That places it near its highest level since June, part of a rally that also drew on a wave of short-position liquidations and renewed optimism around crypto market momentum
Bitcoin has broken free of the $60,000 to $65,000 range it was held in. Image
Bessent’s broader message centered on U.S. fiscal trajectory. He argued that record government debt does not by itself signal distress, pointing to fiscal consolidation through 2025 and expected tariff revenue holding steady into 2026.
Whether the buyback expansion keeps supporting Bitcoin past the initial reaction will likely hinge on how large future operations get, and whether yields stay contained once the enlarged buybacks begin on September 9.
Read the Original story Treasury Secretary Bessent Says Buybacks Can Exceed $4B: Bullish for Bitcoin? by Darryn Pollock at beincrypto.com
