Treasury buybacks are not QE, analysts said, but the move helped pull long-term yields off 19-year highs and triggered a record short squeeze in a market already leaning too bearish.
$BITCOIN coin surged about 25 percent past $78,000 after expanded Treasury buybacks helped lower long-term yields and triggered the liquidation of roughly $4 billion in bearish crypto positions.
Falling Treasury yields can benefit $BITCOIN coin by reducing the appeal of relatively safe, interest-paying government debt, though analysts cautioned that the modest buyback program was a catalyst rather than a fundamental shift.
About $650 million in weekly inflows to spot bitcoin exchange-traded funds supported the rally, while traders are watching whether $BITCOIN oin can remain above its 200-day moving average near $69,000.