Strategy Analyst: US Treasury repo plan could be a catalyst for Bitcoin’s rise; a $180,000 target is within reach
On August 21, according to CoinDesk, U.S. Treasury Secretary Scott Bessent said Thursday that the government expects to conduct routine long-term Treasury repo operations and may expand their scale, above the previously announced $4 billion plan.
Bessent said the government aims to stabilize the bond market and ensure that yield levels reflect underlying economic fundamentals. After the news was released, the price of Bitcoin climbed further, at one point approaching $73,000.
Mark Connors, a macro strategist for the long-term bond market, said this long-term Treasury repo plan could become an important catalyst for the next leg up in Bitcoin, creating conditions for BTC to move toward $180,000.
In Connors’ view, the Treasury’s involvement in bond-market repo operations is an important signal showing the government is responding to pressure caused by rising long-term borrowing costs.
Specifically, higher U.S. Treasury yields tend to attract capital flows into the Treasury market, thereby reducing inflows into risk assets such as cryptocurrencies; but if the repo operations can support bond prices and bring yields down, the macro pressure facing Bitcoin would be alleviated.
In summary, this policy-driven improvement in macro liquidity not only creates a more favorable market environment for risk assets such as Bitcoin, but also provides investors with new support for their expectations regarding BTC’s future price performance.
#美债回购 #比特币
On August 21, according to CoinDesk, U.S. Treasury Secretary Scott Bessent said Thursday that the government expects to conduct routine long-term Treasury repo operations and may expand their scale, above the previously announced $4 billion plan.
Bessent said the government aims to stabilize the bond market and ensure that yield levels reflect underlying economic fundamentals. After the news was released, the price of Bitcoin climbed further, at one point approaching $73,000.
Mark Connors, a macro strategist for the long-term bond market, said this long-term Treasury repo plan could become an important catalyst for the next leg up in Bitcoin, creating conditions for BTC to move toward $180,000.
In Connors’ view, the Treasury’s involvement in bond-market repo operations is an important signal showing the government is responding to pressure caused by rising long-term borrowing costs.
Specifically, higher U.S. Treasury yields tend to attract capital flows into the Treasury market, thereby reducing inflows into risk assets such as cryptocurrencies; but if the repo operations can support bond prices and bring yields down, the macro pressure facing Bitcoin would be alleviated.
In summary, this policy-driven improvement in macro liquidity not only creates a more favorable market environment for risk assets such as Bitcoin, but also provides investors with new support for their expectations regarding BTC’s future price performance.
#美债回购 #比特币