The cryptocurrency market received a powerful boost: bitcoin (BTC) updated its local high, rising above the $79,000 mark. The trigger for this move was statements by US Treasury Secretary Scott Bessent, who effectively opened the door to a significant expansion of the government bond buyback program.
On Thursday, Bessent indicated in an interview with CNBC that the volume of Treasury buyback operations could significantly exceed the previously set limit of $4 billion per transaction. This statement came just a day after the department officially doubled the maximum buyback size for long-term bonds — from $2 billion to at least $4 billion per operation. The new terms take effect on September 9 and will target securities with maturities of 10 to 30 years.
Bessent: $4 billion is not the ceiling
The key signal for the market was that the Secretary did not set an upper limit. According to him, the final volume of operations will depend on market conditions. The main goal of the program is to restore market depth, which has become "thin" amid large-scale corporate issuances and weak liquidity in the 30-year securities segment.
This is an important nuance. It is not just about mechanical support for the government debt market, but an attempt by the Treasury to actively manage liquidity and smooth volatility in the long-term segment of the yield curve. For investors, this is a signal that the Fed and the Treasury are ready to act more decisively.
Why this matters for bitcoin
The impact on the leading cryptocurrency occurs not directly, but through bond yields and the volume of free liquidity. The yield on 30-year securities recently reached its highest levels since 2007, but after the buyback announcement, it sharply declined. Lower long-term bond yields weaken their competition for investor capital. During such periods, funds traditionally flow into risk assets, including bitcoin and gold. Notably, the precious metal also rose in price this week.
Bessent himself linked the recent yield spike to a temporary geopolitical factor — the conflict between the US and Iran — and expressed confidence that the market would return to normal. However, the effect of his words proved short-lived: by the end of the session, the 10-year yield rose again. Nevertheless, bitcoin held its gains, trading near $77,420. Support for prices comes from short liquidations and a new wave of optimism in the crypto market.
Bitcoin's ability to hold near its achieved highs will largely depend on how substantial the actual buyback operations starting September 9 turn out to be, and whether yields remain at moderate levels. If the Treasury continues in the same vein, we could see consolidation above $79,000 and preparation for an assault on the next levels.
My view: Bessent's statements are a classic example of "verbal intervention," which can move the market in the short term. However, the sustainability of the bullish trend will be determined not by words, but by actual buyback volumes and overall liquidity in the system. For now, the fundamental drivers for BTC growth remain in place.