Bitcoin’s (BTC) jump toward $70,000 began with a shift in the U.S. bond market before ETF inflows and forced short liquidations turned the move into a sharp crypto rally.
The first trigger came from the U.S. Treasury’s decision to increase long-end bond buybacks.
The department moved to at least double the size of liquidity support operations for 10-to-30-year Treasury debt, raising the operation size from $2 billion to at least $4 billion beginning Sep. 9 and running through Nov. 4.
That mattered because long-term Treasury yields had been under pressure after the 30-year yield touched its highest level since 2007.
When the buyback expansion was announced, yields fell, the dollar weakened and risk appetite improved across markets. The 10-year Treasury yield slipped to around 4.64% from 4.71% late Tuesday, creating a friendlier backdrop for assets such as Bitcoin.
Treasury Move Hit The Market First
The rally was not caused by the Federal Reserve restarting quantitative easing. Treasury buybacks involve repurchasing existing government securities to support liquidity in the bond market. They do not represent a Fed money-printing program.
Still, the timing was powerful. Bitcoin moved after the bond market reaction, not before it. Lower long-end yields reduced the relative appeal of government debt and helped push traders back toward risk assets.
Bitcoin climbed above $68,000 for the first time since June as investors reacted to the Treasury move and the broader improvement in market conditions.
Short Sellers Were Forced To Chase
Once Bitcoin broke higher, positioning made the move more violent.
Leveraged traders who had been betting against Bitcoin were forced to close positions as the price rose. That created forced buying, which helped turn a macro-driven rally into a sharper price spike near $70,000.
The move also came as spot crypto ETF demand continued to support the broader market.
Vladimir Tikhomirov, Co-Founder of DeFi infrastructure company Algebra, said the latest U.S. crypto spot ETF inflow data shows institutional demand is continuing to build.
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“The latest data on US crypto spot ETF inflows acts as further proof of how institutional demand for crypto assets is steadily growing,” Tikhomirov said. “And as the primary entry point into the industry, Bitcoin, unsurprisingly, continues to attract the largest share of capital.”
He said Ethereum (ETH) inflows also point to a wider shift in how investors are approaching the sector.
“They’re not looking at crypto as alternative investment assets. They’re learning to see blockchain as genuine financial infrastructure,” Tikhomirov said.
ETF Flows Add A Second Layer
The broader implication is that Bitcoin’s move was not only about a single Treasury announcement. The bond market created the opening, but ETF flows and crypto positioning amplified the rally.
Tikhomirov said inflows into assets such as Ethereum, XRP, Solana (SOL) and Chainlink (LINK) show investors are expanding beyond Bitcoin exposure and positioning across blockchain infrastructure.
“As tokenization gains greater traction and more RWAs move onto blockchain rails, gaining exposure to networks that power this whole ecosystem becomes that much more important,” he said.
For Bitcoin, the next test is whether the market can hold the rally once the short squeeze fades. Sep. 9 is now important because that is when the expanded Treasury buyback operations begin.
If long-term yields remain contained and ETF demand continues, the same mix that pushed Bitcoin toward $70,000 could keep supporting the market.
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