Bitcoin rebound tied to Treasury buybacks as Jackson Hole tests liquidity outlook

Bitcoin advanced roughly 25% from about $63,000 to near $79,500, with increased demand for U.S.-listed Bitcoin ETFs and Treasury plans to expand purchases of certain long-dated government bonds supporting the move. Anthony Pompliano, CEO of Professional Capital Management, linked the rebound above $80,000 to expectations of continuing money-supply growth, while VanEck’s Matthew Sigel also cited the Treasury announcement. Treasury plans to raise the maximum size of certain buyback operations from $2 billion to at least $4 billion per operation beginning Sept. 9, describing them as liquidity support for less-traded government bonds rather than Federal Reserve quantitative easing. The rally now faces a policy test from Federal Reserve Chairman Kevin Warsh’s speech at the annual Jackson Hole symposium. Inflation measured by the Fed’s preferred PCE index reached 3.7% in July, the benchmark fed funds rate has remained at 3.50%-3.75% in recent months, and long-term borrowing costs remain elevated. Risk Dimensions chief investment officer Mark Connors expects Warsh to discuss broader changes to inflation measurement and Fed communication while keeping a rate hike under consideration, but said, "There will be no hike before midterms." Hashdex chief investment officer Samir Kerbage said Bitcoin responds more to global liquidity and long-term Treasury yields than to the September policy decision. Robert Kiyosaki separately warned that cash savers could lose purchasing power after U.S. public debt exceeded $40 trillion, favoring gold, silver, Bitcoin and selected real estate. Benjamin Cowen said the latest spike lacked strong whale activity. Bitcoin was later quoted at $79,707.18 at 7:15 a.m. Eastern on Aug. 27, 2026, with differing prices reflecting separate reporting times.

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