The US debt repurchase program unexpectedly boosted Bitcoin by 25%, and the scale of short liquidations reached $4 billion

Comparatively, after the US Treasury expanded the scale of long-term US bond repurchases, the yield on 30-year US bonds fell from a 19-year high of 5.34% to about 5.19%, while Bitcoin rose by about 25% within a few days, breaking through $79,000 at one point. Approximately $4 billion of short cryptocurrency positions were liquidated during this period, further amplifying the gains.

The US Treasury Department previously announced that it would increase the scale of the longest term treasury bond repurchase operation from a single $2 billion to $4 billion. Analysts pointed out that this operation is not equivalent to the Federal Reserve's quantitative easing (QE). The main effect is to improve the liquidity of old securities and optimize the debt structure, but the market sees it as a signal of policy support for long-term US bond yields.

Analysts believe that the key to Bitcoin's surge is not the buyback itself, but that the market's previous short positions were too concentrated. After the long-term decline in US bond yields, bears were forced to close their positions, creating a strong shorting market.

Meanwhile, the net inflow of US spot Bitcoin ETFs was around $6.5 billion this week, and Trump once again urged Congress to advance the CLARITY Act to further strengthen market risk appetite.

CoinEx chief analyst Jeff Ko said that the key right now is whether Bitcoin can hold the 200-day EMA of around $69,000 and turn it from resistance to support. Market participants also warned that if the 10-year US Treasury yield rises above 4.7% and the 30-year yield approaches 5.3%, Bitcoin's current breakthrough may face a new test.

Bitcoin has now broken through the 200-day EMA and continues to rise. In the next phase, the market will focus on whether it can maintain its gains in a high-yield environment.