According to external sources, with the expansion of long-term Treasury liquidity support, the United States Department of the Treasury quickly reversed long-term United States debt returns, resulting in stronger risk assets. According to the article, this change reduced the opportunity cost of holding high-risk assets and amplified the increase in Bitcoin the same day through an ETF inflow that flatted the derivatives.

Repurchase ceiling raised to $4.0 billion

The United States Department of the Treasury announced on 19 August that, from 9 September to 4 November 2026, it would increase the single liquidity ceiling of the 10-20 and 20-30-year nominal-rate national debt to at least $4 billion. The number of associated long-end operations will also increase from 2 to 4 per quarter.

According to the article, such buy-backs are mainly aimed at older “non-current” national debt, which is inactive. By repurchaseing these vouchers, the Ministry of Finance helps first-class traders to reduce the pressure on stocks and release balance sheet space. The original version emphasizes that this does not amount to quantitative easing, since the Ministry of Finance usually finances by issuing new benchmark bonds or shorter-term debt, which does not increase the size of the total debt.

30 Annual rate of return

After the news was released, the debtor market reacted very quickly. 30 The annual US debt return rate, which had been high in 19 years as at the date of the previous transaction, fell to 5.34 per cent, falling to 5.19 per cent on a single-day basis by 9 basis points;10 the annual rate of return fell to 4.647 per cent.

Against this background, bitcoin rose from a low of $64,100 in Japan to $69,500 in 12 hours, up 8.2 per cent, a high since early June. According to the article, the downside of the long-end rate of return would reduce risk-free returns, thereby reducing the opportunity cost of holding non-interest-bearing assets such as bitcoin and thus making funds more willing to move to risk-based assets.

ETF Flowing into a stack and empty silo

In addition to changes in interest rates, institutional finance and derivatives markets have accelerated the evolution of the situation. According to the data, United States spot bitcoin ETF received a total net inflow of $487 million on August 17 and 18, of which Belet IBIT received $143.6 million on August 18.

The article also mentioned that the total amount of the day at which the main exchange was at a level of $144 billion, of which $1.29 billion was completed within one hour. Thus, foreign sources believe that the early inflow of cash, the rapid return on returns and the high-leveraging level of concentration together constitute the main driving forces behind the increase.

  • Long-end sovereign debt single buyback cap: $2 billion to at least $4 billion
  • Bitcoin per day: US$64,100 to US$69,500
  • ETF net two-day inflows: $487 million

Additional information:Citing Andre Dragosch, the head of Bitwise research, it is argued that bitcoin tends to reflect macro-liquidation changes more quickly, so the round rise is considered to be the result of a bond between the United States, ETF and derivatives markets.