Bitcoin Reclaims $66,000 as US Treasury Expands Bond Buybacks

Bitcoin rose back above $66,000 after the US Treasury announced a bigger bond buyback program.

CoinMarketCap data on Aug. 20 showed Bitcoin trading at $66,366.76 as of 12:06 a.m. Korea time, up about 2.51% from a day earlier. The token has gained 4.65% over the past week.

The move followed a Treasury announcement. Bloomberg reported that the department said in a statement on Aug. 20 that it would at least double the size of its buybacks to support liquidity in longer-dated bonds, including maturities of 10 to 30 years.

The news drove 30-year Treasury prices sharply higher, sending the yield down nearly 10 basis points to 5.19%. Bond prices and yields typically move in opposite directions.

Market participants said the expanded Treasury buyback program could bolster Bitcoin's fundamentals. Spot On Chain said the measure would directly inject liquidity into the long-term Treasury market and help ease financial conditions.

Bitcoin and other risk assets tend to rise when the Treasury steps in, Spot On Chain added. The firm also said the Treasury's bond purchases could provide an additional fundamental tailwind to Bitcoin's existing upward momentum.