Bitcoin Surges 21% on US Treasury Buyback Expansion as Dollar-Debasement Trade Returns

Bitcoin has rallied 21% since the US Treasury announced it would double its long-term bond buyback program from $2 billion to $4 billion, according to Glassnode data, approaching the $70,000 level it had not reached since June. Analysts framed the move as a quiet form of quantitative easing: by buying back longer-duration bonds, the Treasury pushes 30-year yields lower and weakens the dollar, making scarce assets like Bitcoin and gold more attractive as debasement hedges. Gold rose more than 3% over the same two-day stretch.

Crypto ETFs captured $1.61 billion in inflows over four consecutive days, but that momentum now faces a direct test: a $183 billion Treasury auction window is putting fresh upward pressure on 30-year yields, which markets are watching closely for signs of stress in equities and risk assets more broadly. Equities partially rebounded intraday as yields rose, though analysts are debating how much further long-duration rates can climb before meaningfully pressuring stock valuations. The competing forces, a dollar-debasement narrative that favors Bitcoin alongside a yield spike that can tighten financial conditions broadly, leave the sustainability of the crypto rally unresolved.