🇺🇸 The U.S. is once again stepping into the market for its own debt. And Bitcoin is already watching closely.
In September, Treasury may conduct buybacks of more than $34 billion. And starting September 9, the maximum size of a single long-bond operation will rise from at least $2 billion to $4 billion.
Against this backdrop, there is reason to pay attention: the previous expansion of the program became one of the catalysts for a wild market reaction - BTC then gained about 22% in a week.
But don’t rush to shout “QE!” This is not the Fed’s printing press. Treasury is buying back bonds that have already been issued, trying to support liquidity and manage the structure of government debt.
Still, the market heard the signal. Lower long-term yields make risk assets a bit more attractive, and Bitcoin loves these liquidity stories.
I’ve already seen how a single buyback gets turned into a “guaranteed pump.” Here it’s better to look not at the headline about $34 billion, but at Treasury yields, the dollar, and real liquidity conditions. If you’re interested in these connections specifically - subscribe to @MoonMan567
In September, Treasury may conduct buybacks of more than $34 billion. And starting September 9, the maximum size of a single long-bond operation will rise from at least $2 billion to $4 billion.
Against this backdrop, there is reason to pay attention: the previous expansion of the program became one of the catalysts for a wild market reaction - BTC then gained about 22% in a week.
But don’t rush to shout “QE!” This is not the Fed’s printing press. Treasury is buying back bonds that have already been issued, trying to support liquidity and manage the structure of government debt.
Still, the market heard the signal. Lower long-term yields make risk assets a bit more attractive, and Bitcoin loves these liquidity stories.
I’ve already seen how a single buyback gets turned into a “guaranteed pump.” Here it’s better to look not at the headline about $34 billion, but at Treasury yields, the dollar, and real liquidity conditions. If you’re interested in these connections specifically - subscribe to @MoonMan567
