Bitcoin outlook brightens as Treasury weighs bond buybacks above $4 billion

Bitcoin gained after Treasury Secretary Scott Bessent said on Aug. 20 that the U.S. government plans regular buybacks of long-dated bonds and could expand them beyond the previously announced $4 billion. Mark Connors, chief investment officer at Risk Dimensions, said monthly support could eventually reach $10 billion to $30 billion, easing the pressure that high Treasury yields place on risk assets. Bitcoin approached $73,000 as the 10-year Treasury yield traded around 4.68%, up three basis points. Connors said a potential change to the supplementary leverage ratio, which limits banks’ Treasury holdings relative to capital, could provide another catalyst and send Bitcoin toward an initial $180,000 threshold. His cycle target through 2030 is $180,000 to $360,000. Near term, a concentration of leveraged short positions around $72,000 could amplify gains if traders close positions or face liquidation. Connors warned that Bitcoin could fall from $72,000 if the CLARITY Act fails to advance by around Sept. 15.

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Bitcoin outlook brightens as Treasury weighs bond buybacks above $4 billion - CoinPost Terminal