Treasury Bond Buybacks Could Boost Bitcoin Toward $180K

The U.S. Treasury’s plan to regularly buy back long-term government debt could provide a significant tailwind for Bitcoin (BTC) by easing pressure from elevated bond yields, according to macro strategist Mark Connors.

Treasury Secretary Scott Bessent said the government expects to conduct recurring purchases of long-dated Treasury bonds, with buybacks potentially exceeding the previously announced $4 billion. His comments came as the 10-year Treasury yield hovered near 4.68%, while Bitcoin climbed toward $73,000.

Connors, chief investment officer at Risk Dimensions, believes the Treasury’s action signals growing concern over high long-term borrowing costs. Although the initial bond purchases are relatively modest, he expects monthly Treasury buybacks could eventually expand to between $10 billion and $30 billion.

Such a move could benefit the Bitcoin price because higher Treasury yields typically make government debt more attractive relative to risk assets such as cryptocurrencies. Treasury buybacks can support bond prices and potentially limit yields, improving overall liquidity conditions for BTC and other speculative assets.

The development has also altered Connors’ Bitcoin outlook. He previously expected BTC to remain relatively weak until November based on its historical four-year market cycle, but increased Treasury intervention could accelerate a recovery.

Another possible catalyst is an adjustment to the supplementary leverage ratio (SLR), which influences how much Treasury debt banks can hold against their capital. Looser requirements could allow financial institutions to absorb more government bonds. Connors believes such changes could help Bitcoin target $180,000, with his longer-term BTC forecast ranging from $180,000 to $360,000 through 2030.

In the short term, $72,000 remains an important Bitcoin price level. Charles Schwab crypto research director Jim Ferraioli previously identified significant leveraged short positioning around that mark. Sustained trading above it could force bearish traders to buy BTC to close positions, potentially fueling a short squeeze.

However, Connors warned that regulatory developments remain a downside risk. He believes Bitcoin could retreat from $72,000 if the Clarity Act fails to make meaningful progress by around Sept. 15, making U.S. crypto legislation another key factor for near-term market sentiment.