The big pie has surged this round to $80,000, and the macro catalyst behind it has gained another layer: the U.S. Treasury is considering tapping about $940 billion in TGA to provide funding for expanding long-term U.S. Treasury repurchases; meanwhile, the per-transaction cap for long-dated Treasury buybacks has been raised from $2 billion to at least $4 billion, with the program set to begin in September.
This is not QE, but the market will interpret it as a signal of “the government proactively supporting long-dated Treasuries + releasing liquidity.” The U.S. dollar weakens, and gold $XAU and $BTC benefit in tandem. BTC has jumped more than 20% over the past week, already proving that funds are buying into this narrative.
This is not QE, but the market will interpret it as a signal of “the government proactively supporting long-dated Treasuries + releasing liquidity.” The U.S. dollar weakens, and gold $XAU and $BTC benefit in tandem. BTC has jumped more than 20% over the past week, already proving that funds are buying into this narrative.