Treasury buybacks could set up Bitcoin’s next move toward $180,000, says strategist
A market strategist suggests that U.S. Treasury bond buybacks could stabilize yields and potentially catalyze Bitcoin's price toward $180,000. The analysis links government debt management strategies to the performance of risk assets like cryptocurrency.
Why it matters
It illustrates the growing intersection between traditional macroeconomic policy and the valuation of digital assets.
Treasury Secretary Scott Bessent said Thursday that the government expects to conduct regular buybacks of long-dated bonds and could increase their size beyond the $4 billion previously announced.
“We want to show that [bond] yields do not reflect underlying fundamentals,” Bessent told CNBC. “We have a big toolkit.”
The comments came as the 10-year Treasury yield traded around 4.68%, up three basis points on the day but off its session high. Bitcoin added to its gains following Bessent’s remarks, nearly reaching $73,000.
Connors, a longtime bond-market investor and chief investment officer at Risk Dimensions, described the Treasury move as an unusual and important intervention. He sees it as a sign that the government is responding to pressure from rising long-term borrowing costs.
“This is the first tell,” Connors said. He expects Treasury purchases to grow as the government faces the challenge of finding buyers for its debt.
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