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      US Treasury's Buyback Program Boosts Gold and Bitcoin Prices

      The US Treasury's recent decision to double the size of its liquidity-support buyback program has led to significant increases in the prices of gold and Bitcoin. Following the announcement on August 19, Bitcoin surged over 5%, reaching approximately $68,147 before briefly exceeding the $70,000 mark, a level not seen since June. Gold also experienced a notable rise, advancing around 2.7% to about $4,485 per ounce.

      The Treasury's policy change involves increasing the maximum transaction size for buyback operations on longer-dated nominal bonds from $2 billion to at least $4 billion per operation. This expanded program is set to take effect on September 9 and will run through November 4. Treasury Secretary Scott Bessent emphasized that this move is aimed at enhancing liquidity in the market, particularly as the 30-year Treasury yield recently hit its highest level since 2007 due to a slowdown in demand for long-dated bonds.

      The announcement has led to a weakening of the dollar, as traders interpret the buyback program as a form of quantitative easing. The surge in Bitcoin prices was further fueled by a short squeeze, where traders who had bet against the cryptocurrency were forced to cover their positions, contributing to the rapid price increase.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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