Bitcoin rose about 25% in just a few days and briefly climbed above $79,000 after the U.S. Treasury expanded its long-dated debt buyback program on Aug. 22.
Over the same period, the 30-year Treasury yield eased from a 19-year high of 5.34% to around 5.19%, and roughly $4 billion in crypto short positions were liquidated, adding to the rally.
The Treasury had previously said it would increase the size of its longest-dated bond buyback operations from $2 billion per auction to $4 billion.
Analysts said the move is not the same as Federal Reserve quantitative easing. Its main purpose is to improve liquidity in older bonds and refine the government’s debt profile, although markets took it as a sign of policy support for long-dated Treasury yields.
They also said the surge in Bitcoin was driven less by the buyback itself than by crowded short positioning. As long-term yields fell, shorts were forced to cover, creating a strong squeeze.
At the same time, U.S. spot Bitcoin ETFs recorded about $650 million in net inflows this week, while Trump again urged Congress to move forward with the CLARITY Act.
CoinEx chief analyst Jeff Ko said the key question now is whether Bitcoin can hold the 200-day moving average near $69,000 and turn that level from resistance into support.
Market participants also warned that if the 10-year Treasury yield moves back above 4.7% and the 30-year yield approaches 5.3%, this breakout in Bitcoin could face another test. Bitcoin is now trading above the 200-day moving average and continuing to rise, and the next leg will be watched against the backdrop of still-elevated yields.