🚨 Bitcoin Tops $79,000 , But It's Not QE Driving It
Bitcoin has pushed past $79,000, up over 23% this week , its largest weekly gain since March 2023. The catalyst is unusual: a U.S.
Treasury bond buyback announcement, not a Fed liquidity injection.
What actually happened:
Starting Sept 9 through Nov 4, the Treasury will buy back $4 billion+ of its own long-duration bonds (10–30yr) per operation , double the previous $2B cap. Treasury Secretary Scott Bessent said the size "could be more than the $4 billion per issue."
Why this isn't QE or YCC:
This is funded using proceeds from short-term debt, not newly created money , economist Lance Roberts compared it to "Operation Twist 2.0," a 2011 Fed strategy to lower long-term yields without expanding the money supply.
Why markets are still rallying on it:
Analysts argue it's less about the buyback itself (small relative to total bond supply) and more about the signal it sends , that policymakers are growing uneasy about borrowing costs sitting near 2007 highs.
Some see it as a step toward a future, more aggressive Fed yield curve control (YCC) move, which would be genuinely stimulatory.
Deutsche Bank called the announcement a "soft form of financial repression" , policies that keep real borrowing costs low by letting inflation erode debt value over time. Historically, that dynamic is bullish for hard assets like bitcoin and gold.
#dyor #NFA✅
Bitcoin has pushed past $79,000, up over 23% this week , its largest weekly gain since March 2023. The catalyst is unusual: a U.S.
Treasury bond buyback announcement, not a Fed liquidity injection.
What actually happened:
Starting Sept 9 through Nov 4, the Treasury will buy back $4 billion+ of its own long-duration bonds (10–30yr) per operation , double the previous $2B cap. Treasury Secretary Scott Bessent said the size "could be more than the $4 billion per issue."
Why this isn't QE or YCC:
This is funded using proceeds from short-term debt, not newly created money , economist Lance Roberts compared it to "Operation Twist 2.0," a 2011 Fed strategy to lower long-term yields without expanding the money supply.
Why markets are still rallying on it:
Analysts argue it's less about the buyback itself (small relative to total bond supply) and more about the signal it sends , that policymakers are growing uneasy about borrowing costs sitting near 2007 highs.
Some see it as a step toward a future, more aggressive Fed yield curve control (YCC) move, which would be genuinely stimulatory.
Deutsche Bank called the announcement a "soft form of financial repression" , policies that keep real borrowing costs low by letting inflation erode debt value over time. Historically, that dynamic is bullish for hard assets like bitcoin and gold.
#dyor #NFA✅