The Same US Treasury Move Sent Bitcoin From $65K to $80K – So Why Didn't It Work This Time?

The US Treasury Department announced an expansion of its liquidity-support buyback program for longer-dated government debt to $6 billion, tripling its original size following an earlier increase to $4 billion on August 19. While the previous announcement triggered a sharp rally in Bitcoin from $65,000 to $80,000 alongside a drop in bond yields, the latest move failed to spark upside, with Bitcoin dipping below $78,000. Market analysts note that the announcement lacked surprise, as Wall Street expectations had reached as high as $10 billion. At the same time, deteriorating macroeconomic factors—including surging crude oil prices above $100, robust US employment data, and escalating inflation concerns—have fueled expectations that the Federal Reserve could hike interest rates. As a result, long-term Treasury yields jumped instead of declining, with the 10-year yield reaching a three-year high of 4.85% and the 20-year and 30-year yields climbing to approximately 5.30%. The rising yields have constrained broad risk appetite, offsetting the liquidity effects of the Treasury's buyback program.