Bitcoin surged to a three-month high above $81,300 on Tuesday as the U.S. dollar weakened following the Treasury’s announcement that it would nearly double its bond buyback program to stabilize rising yields.
The flagship cryptocurrency briefly touched $81,300 before paring gains to trade at $78,644.80, up 0.1% in early Asian trading. The move extended Bitcoin’s eight-session winning streak, capping a period of sustained upward momentum.
The Treasury’s plan to accelerate bond buybacks—effectively expanding its balance sheet by $120 billion over the next two quarters—shifted market focus from higher interest rates to concerns over dollar debasement. Analysts at OCBC noted that the intervention had altered the narrative, driving flows into gold and cryptocurrencies while lifting breakeven inflation expectations. "The buyback announcement changed the market narrative from higher rates to dollar devaluation," the bank said. "While comparisons to quantitative easing are overstated, growing political uncertainty and doubts over the Fed’s independence are weighing on the dollar."
Gold prices rose alongside Bitcoin, reflecting safe-haven demand amid bond market turbulence. The yellow metal’s gains underscored broader investor unease over U.S. fiscal dynamics and long-term dollar stability.
The cryptocurrency market also saw a wave of short liquidations, with Bitcoin short positions totaling $457 million liquidated in the past 24 hours, according to Coinglass. Ether short positions were similarly unwound, with $112.3 million in liquidations over the same period. The deleveraging contributed to the broader rally, particularly in altcoins.
Among major tokens, Ether declined 1.2% to $2,463, while Solana advanced 2.3%. XRP fell 2.6%, Cardano dropped about 3%, and Dogecoin slipped 2.3%. The $TRUMP memecoin, which had surged earlier in the week, tumbled 7.5% after a prior session’s gains.
The dollar’s decline and the Treasury’s buyback strategy have fueled speculation of a sustained shift in market sentiment, with investors increasingly positioning for a weaker greenback and higher inflation hedges. Bitcoin’s resilience—amid its year-to-date underperformance—has further reinforced its appeal as a non-sovereign asset in the current macro environment.
