Analysis: Bitcoin soared to an 11-week high, or as the US Treasury increased treasury buybacks
According to comparative news, Bitcoin rose sharply after the opening of US stocks on Wednesday, driven by the US Treasury's expansion of the scale of treasury bond repurchases and improvements in market liquidity expectations, reaching the highest level since June 2. Earlier, the US Treasury Department announced that it will expand the scale of long-term treasury bond repurchase operations starting September 9, and that the upper limit of a single repurchase will be raised from 2 billion US dollars to at least 4 billion US dollars. The move is viewed by the market as providing more liquidity support to the long-term bond market and driving a general rise in risk assets. Affected by the news, the yield on US 30-year Treasury bonds fell rapidly, down about 9 basis points to 5.19% from the previous 20-year high. The US Treasury Department said that the purpose of expanding the scale of repurchases is to meet the continuing needs of investors in the long-term treasury bond market and increase market liquidity. However, analysts pointed out that this buyback did not reduce US debt, but rather adjusted the treasury bond maturity structure. As the US government debt approaches $40 trillion, the market remains concerned about fiscal pressure and the risk of rising interest expenses. Bitfinex said that despite Bitcoin's recent rebound, the upside is still limited by insufficient stablecoin liquidity. The data shows that since May, the supply of stablecoins in exchanges has been reduced by about $14 billion. Furthermore, on-chain data shows that the stablecoin supply ratio (SSR), which measures the relationship between the market value of Bitcoin and the total market value of stablecoins, has continued to rise recently, rising from 9.82 to 11.69 on June 30, indicating that the liquidity environment in the market is still tight. Analysts believe that improvements in US fiscal liquidity expectations may provide short-term support for Bitcoin and risky assets, but stablecoin capital has not clearly returned, which means that subsequent increases will still require more capital confirmation.

