How Will US Treasury Bond Buybacks Affect Bitcoin? Here Are the Analysts’ Opinions

It has been suggested that expanding the US Treasury Department’s bond repurchase program could help Bitcoin reach its target level sooner in the current market cycle.

Mark Connors, Chief Investment Officer and macroeconomics analyst at Risk Dimensions, said that if the Treasury’s actions reduce pressure on long-term US Treasury bond yields, it could create a strong upside potential for Bitcoin.

According to Connors, these developments could allow Bitcoin to reach its current market cycle target of $180,000 sooner. The analyst believes that if favorable macroeconomic conditions emerge, Bitcoin could gain momentum and reach a price range of $180,000 to $360,000 in the long term.

Recently, macroeconomic developments have been increasingly impacting Bitcoin’s price movements. US Treasury yields, monetary policy expectations, and global liquidity conditions are among the factors directly affecting investor demand for risky assets. Therefore, the Treasury’s debt management policies are closely monitored by the cryptocurrency market.

Connors also noted that developments regarding the CLARITY Act bill, which aims to regulate the cryptocurrency market in the US, will be a significant variable in the short term. He specifically mentioned that any progress around September 15th will be closely watched by the market, adding that regulatory clarity could strengthen institutional investors’ interest in Bitcoin.

The analyst’s assessments suggest that a new surge in Bitcoin price could depend not only on developments specific to the cryptocurrency market but also on US economic and debt policies.

*This is not investment advice.