đ Bitcoin had gone from $65,400 to $69,700 in under an hour, with $746 million in shorts wiped out in a single one-minute candle as the move trapped leveraged sellers. Total crypto liquidations hit $3 billion in 24 hours.
The move traces back to the bond market. Treasury doubled its long-term buyback cap from $2B to $4B per operation, targeting 10 to 30-year debt from September 9 through November 4. The announcement came a day after the 30-year yield hit 5.337%, its highest since 2007. The 10-year fell 6bps to 4.647%, the 30-year fell 9bps to 5.196%.
This is not QE. The Fed did not expand its balance sheet. Treasury bought back its own existing debt to smooth liquidity in the long end, at a scale still small relative to a $32 trillion market. But falling long-term yields lowered the discount rate on risk assets at the exact moment leveraged shorts were positioned against Bitcoin, and the squeeze did the rest.
$BTC
The move traces back to the bond market. Treasury doubled its long-term buyback cap from $2B to $4B per operation, targeting 10 to 30-year debt from September 9 through November 4. The announcement came a day after the 30-year yield hit 5.337%, its highest since 2007. The 10-year fell 6bps to 4.647%, the 30-year fell 9bps to 5.196%.
This is not QE. The Fed did not expand its balance sheet. Treasury bought back its own existing debt to smooth liquidity in the long end, at a scale still small relative to a $32 trillion market. But falling long-term yields lowered the discount rate on risk assets at the exact moment leveraged shorts were positioned against Bitcoin, and the squeeze did the rest.
$BTC