Bitcoin Jumps on Expanded US Long-Bond Buybacks, ETF Inflows; PCE and Jackson Hole in Focus

Last week's sharp rally in Bitcoin was driven by the U.S. Treasury's expanded buybacks of long-term government bonds and fresh inflows into spot cryptocurrency exchange-traded funds, according to an analysis. This week, investors are focused on the U.S. personal consumption expenditures price index, Nvidia earnings and a Jackson Hole speech as the market's main catalysts.

BlockBeats reported on August 24 that QCP Capital said in a market report that Bitcoin rose more than 20% last week, its strongest weekly gain since March 2024. The cryptocurrency briefly climbed to about $79,500.

QCP said the advance coincided with a sharp turn in the U.S. Treasury market. The 30-year Treasury yield approached 5.3% at one point, the highest since 2007. The Treasury later announced that, starting September 9, it would increase the size of each long-bond buyback operation to at least $4 billion from a previous cap of $2 billion to support liquidity.

After that announcement, long-term Treasury yields fell and the dollar weakened, lifting both Bitcoin and gold, QCP wrote. The firm said position adjustments and short covering initially accelerated the rally, and spot buying later strengthened.

Combined net inflows into U.S. spot Bitcoin and Ether ETFs totaled about $2.6 billion last week. That was the largest weekly net inflow since October 2025.

QCP identified the key market catalysts this week as the U.S. July PCE price index, the revised second-quarter gross domestic product reading, Nvidia earnings and Federal Reserve Chair Wash's first keynote speech at Jackson Hole. Nvidia's results will be watched for signals on whether the artificial intelligence investment cycle is continuing, while the Jackson Hole speech could offer clues on the direction of monetary policy.

"Last week's market was led by position changes and moves in the U.S. Treasury market," QCP said. "The key question is whether this week's data releases can provide clearer direction for the macroeconomic backdrop."