Bitcoin Surges Past $79,000 as Treasury Move Signals Shift, Not Stimulus

Bitcoin has climbed past $79,000, gaining 26% over the past week, its strongest weekly performance since March 2023. The rally follows the US Treasury’s decision to double its buyback of long-term bonds, though analysts say the move is not quantitative easing or yield curve control.

What the Treasury Actually Announced

Starting September 9 through November 4, the Treasury will repurchase at least $4 billion of long-duration bonds per operation, funded using existing funds or short-term debt rather than newly created money. Analysts compared it to “Operation Twist,” a 2011 Fed strategy that shifted the yield curve without expanding the money supply.

Why the Signal Matters More Than the Buyback

Experts noted the buyback itself is small relative to total bond supply. Instead, markets are reacting to what the move suggests: growing concern among policymakers over rising long-term borrowing costs. The 30-year yield briefly eased before climbing back toward 5.25%, indicating the underlying pressure on yields remains unresolved.