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rizimaher

08/20 11:54

Bitcoin’s $69,000 breakout now hinges on yields af

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Bitcoin’s $69,000 breakout now hinges on yields after Fed warns more tightening may be neededBitcoin ran from around $64,100 to nearly $70,000 within hours on Aug. 19, once the US Treasury unexpectedly doubled its planned buybacks of long-dated government debt. The move pushed bond yields lower and forced roughly $1.4 billion of crypto short positions out of the market in just four hours. Treasury said it would raise the maximum size of its liquidity-support buybacks for 10-to-20-year and 20-to-30-year securities from $2 billion to at least $4 billion per operation, running from Sept. 9 through Nov. 4. The stated purpose was improving liquidity in longer-dated Treasuries. Market signalBefore / prior levelAfter Treasury announcementWhy it mattersBitcoin~$64,100Nearly $70,000Shows the speed of the macro-driven $BTC repricing30-year Treasury yield~5.34% peak~5.19%Long-end relief was the trigger for the risk rally10-year Treasury yieldNear recent highs~4.65%Lower discount rates reduce pressure on risk assetsCrypto short liquidations—~$1.4B in four hoursExplains why the $BTC move accelerated so violentlyBuyback operation cap$2BAt least $4BTreasury signaled stronger long-end liquidity support
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