The cryptocurrency market received a powerful boost after US Treasury Secretary Scott Bessent signaled that the program to buy back government bonds could be significantly expanded. This statement immediately impacted Bitcoin's price, which updated local highs, rising above the $79,000 mark.
On Thursday, Bessent said in an interview with CNBC that the volume of operations to buy back long-term government bonds could well exceed the established limit of $4 billion per operation. Notably, this threshold was introduced just a day earlier, when the Treasury doubled the maximum buyback size from $2 billion to at least $4 billion, focusing on securities maturing in 10 to 30 years. The start of expanded operations is scheduled for September 9.
Flexibility instead of dogma
The key signal I see in the minister's words is the absence of rigid constraints. Bessent specifically emphasized that $4 billion is not a ceiling, but merely a starting threshold. According to him, the final volume will depend on market conditions. The main goal of the program is to restore market depth, which has become "thin" amid large-scale corporate placements and weak liquidity in the 30-year securities segment.
Why is this so important for the crypto market? The mechanism of influence here is indirect, but extremely effective. Yields on 30-year bonds recently reached their highest levels since 2007, which created serious competition for investor capital. The news of a possible expansion of buybacks triggered a sharp decline in yields, easing conditions across financial markets. And when long-term government bond yields fall, interest in risk assets, including Bitcoin and gold, traditionally rises.
Bullish sentiment returns
It is worth noting that the effect of Bessent's words proved short-lived — by the end of the session, yields on 10-year securities rose again. Nevertheless, Bitcoin held its gained positions and is trading near $77,420, demonstrating resilience to pressure from traditional markets. The rise in prices is supported by short position liquidations and a new wave of optimism among crypto community participants.
Bessent also commented on the situation with rising yields, linking it to the temporary conflict between the US and Iran, and expressed confidence that the market will return to normal once the situation becomes clearer. He noted that the record national debt itself is not a sign of crisis, and expects the budget deficit to shrink by 2025 while maintaining customs duty revenues at current levels until the end of 2026.
My analysis: The expansion of the buyback program is, in essence, a hidden form of quantitative easing that increases liquidity in the system. If operations from September 9 proceed at the stated volumes, we could see a sustained trend toward lower yields, which would become an additional catalyst for Bitcoin's growth. However, one should not forget about volatility: the market has already shown that the reaction to verbal interventions can be short-term. The key question is whether the Treasury can keep yields under control in practice, not just in words.