TLDR
- Treasury Secretary Scott Bessent said bond buybacks could exceed $4 billion per operation, up from a $2 billion cap
- The buyback program targets long-dated bonds maturing in 10 to 30 years, starting September 9
- Lower long-term yields reduce competition for investor capital, which can benefit Bitcoin
- Macro strategist Mark Connors now sees Bitcoin potentially reaching $180,000 sooner than expected
- A near-term risk remains if the Clarity Act fails to progress by September 15
The U.S. Treasury’s plan to buy back long-term government bonds is drawing attention from crypto markets, with some analysts saying it could help push Bitcoin toward new highs.
BREAKING: US Treasury Secretary Bessent says Treasury buybacks announced yesterday could now MORE than double, exceeding $4 billion per operation.
Bessent said buybacks will increase “by at least double,” adding, “we have a big toolkit, so we’ll see.”
This comes just hours… https://t.co/SLNs0MfTgD
— The Kobeissi Letter (@KobeissiLetter) August 20, 2026
Treasury Secretary Scott Bessent told CNBC on Thursday that the bond buyback program could grow beyond $4 billion per operation. That figure was itself raised just a day earlier from a previous cap of $2 billion. The buybacks target bonds maturing in 10 to 30 years and are set to begin September 9.
Bessent framed the move as a response to thin trading conditions in the bond market. He pointed to heavy corporate bond issuance and poor liquidity in the 30-year sector as reasons for the intervention.
How Bond Buybacks Connect to Bitcoin
The link between Treasury buybacks and Bitcoin runs through yields and liquidity. When the government buys back its own bonds, it supports bond prices and helps push yields lower.
High Treasury yields can pull investor capital away from risk assets like Bitcoin. When yields fall, that pressure eases and investors may look elsewhere for returns.
The 30-year yield had reached its highest level since 2007 before the buyback announcement pulled it lower. Bitcoin climbed above $70,000 following the news, breaking out of a range between $60,000 and $65,000 where it had been stuck. At the time of writing, Bitcoin trades near $72,712, up around 5% in 24 hours.
Mark Connors, a veteran bond market investor and chief investment officer at Risk Dimensions, called the Treasury move an unusual and important intervention. He said it signals the government is reacting to pressure from rising long-term borrowing costs.
Connors had previously expected Bitcoin to stay subdued until November, following its traditional four-year cycle. He is now less certain investors will have to wait that long.
What Could Drive Bitcoin to $180,000
Connors sees further policy moves as potential catalysts. He said changes to the supplementary leverage ratio, which affects how much Treasury debt banks can hold, could give banks more room to absorb government bonds and ease yield pressure further.
“When that happens, that’s when Bitcoin starts to seek that first $180,000 price threshold,” Connors said. His target range through 2030 is $180,000 to $360,000.
Short-term positioning also matters. Charles Schwab’s director of crypto research said earlier modeling showed a large concentration of leveraged short positions around $72,000. If Bitcoin holds above that level, those traders could face forced buying, pushing prices higher.
Connors did flag one near-term risk. He said Bitcoin could fall from current levels if the Clarity Act, a crypto regulation bill, fails to make progress by around September 15.
Whether the buyback program continues to support Bitcoin will depend on how large future operations get and whether yields stay contained once the enlarged program begins.
