Bitcoinโs Rally May Have Started Somewhere Else
Everyone noticed $BTC racing toward $69,700.
But the first important move may have happened outside crypto: in the U.S. Treasury market.
The Treasury increased the maximum size of its long-term bond buybacks from $2 billion to at least $4 billion per operation, with larger purchases of longer-dated Treasuries beginning September 9.
Then Treasury yields moved lower.
The 10-year yield fell about 6 bps to 4.647%, while the 30-year yield dropped roughly 9 bps to 5.196%.
And Bitcoin reacted soon after.
BTC moved from around $65,400 to $67,600, before reaching nearly $69,700 just minutes later.
That rapid breakout triggered another wave of buying.
Roughly $1.59 billion in crypto positions were liquidated, including around $746 million in Bitcoin sorts.
Once those short positions started getting wiped out, forced buying added even more momentum to move.
The sequence was straightforward:
Treasury buybacks โ yields fall โ risk appetite improves โ Bitcoin rises โ shorts get liquidated โ BTC accelerates higher.
And this is an important distinction:
This was not QE.
The Federal Reserve did not suddenly restart its money-printing program.
The move began in the Treasury market, while Bitcoin came in afterward.
Then leverage turned the initial rally into a much bigger squeeze.
Now, September 9 becomes a date worth watching.
If Treasury yields react again, crypto markets could be watching closely.
Bond market first.
Bitcoin next.
Short squeeze last.
#Bitcoin #BTC #CryptoRally
