Bitcoin tops $68,000 as Treasury doubles debt buybacks to $4B

Bitcoin rose nearly 3% to $68,473 after the US Treasury said it would more than double long-term debt buybacks to at least $4 billion.

"This is NOT a debt paydown, it is just a rearrangement of the maturity schedule of Treasuries," Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, said.

The Treasury will raise the maximum size of each buyback operation from $2 billion to at least $4 billion starting Sept. 9, targeting the 10-to-20-year and 20-to-30-year segments of the curve that have drawn weak demand since late June. The benchmark 10-year yield fell 6 basis points to 4.647%, while the 30-year dropped 9 basis points to 5.196%, after the longer tenor had touched its highest level in nearly two decades. Ether climbed above $2,100 for the first time since June, up more than 10%, while Solana and XRP also advanced.

Yields Retreat From 19-Year High

The department said the increase "reflects Treasury's desire to provide greater liquidity support in longer-dated nominal sectors." The intervention comes as the national debt has climbed to $39.9 trillion, with annual interest payments projected to exceed $1 trillion this year, according to the Congressional Budget Office. Bitcoin briefly touched $68,982 at 14:30 UTC before easing, with Polymarket data showing a 48% chance the Federal Reserve raises rates this year, down from a high above 60%. A White House crypto summit with President Donald Trump and the SEC's proposed "Reg Crypto" framework added to the bullish backdrop.

The yield surge that preceded the announcement had been driven by inflation concerns, the war in Iran and expanding government debt, with the 30-year hitting a 19-year high on Tuesday. Faster borrowing is also bringing Washington closer to another debt ceiling fight, with the Bipartisan Policy Center projecting the government could hit the $41.1 trillion limit between late winter and midsummer 2027.

Bitcoin's next resistance sits near $69,000, with support at $65,000, the level it held before the Treasury announcement. The buyback program runs through Nov. 4, giving the market a defined window of liquidity support. If yields keep falling, risk assets including Bitcoin could extend gains, though the move does not reduce the government's overall debt load.

This article is for informational purposes only and does not constitute investment advice.