Treasury Buyback Fills $6 Billion Again: So Why Is Bitcoin Below $80K?

Bitcoin slipped below $80,000 on Thursday, down 1.5% over 24 hours, after the US Treasury completed a $6 billion buyback of 20- to 30-year bonds.

Traders had hoped the operation would act as a yield catalyst, similar to the market reaction in August, but the price movement was absent.

On August 19, the Treasury announced it would double its long-dated buybacks to at least $4 billion per operation, a policy surprise that triggered a 7% gain for Bitcoin.

Tuesday's operation, however, was not a surprise; it was on the tentative schedule and dealers offered $10.7 billion, with the Treasury accepting exactly $6 billion across six bonds.

Routine Operation

Newsquawk described the liquidity support operations as routine, noting their purpose is to help dealers offload older, thinly traded bonds without shifting yields.

Treasury paid between 52 and 71 cents on the dollar, for a cash outlay of about $3.8 billion, and it was the fourth full-size fill of the expanded schedule.

Market Response

The price response to later buyback operations has faded, and Bitcoin has since slipped below $80,000 again, with no clear direct correlation to the buyback.

The 10-year Treasury yield has resisted, touching 5.342%, its highest since April 2002, as the Federal Reserve held rates steady during its two-day meeting.

The expanded buyback schedule runs through November 4, and a larger size could change the market's perception of the program.