- Treasury’s $2B buyback frees liquidity, fueling Bitcoin’s Uptober rally momentum.
- Bitcoin breaks $120K with ETF inflows and strong mid-sized holder accumulation.
- Analysts split on buyback impact as BTC eyes $160K–$200K by year-end.
The U.S. Treasury repurchased $2 billion in long-term bonds on October 2, with settlement set for October 3. The buyback covered maturities stretching into the 2040s and 2050s, shrinking supply and signaling confidence in U.S. fiscal stability.
That may sound like routine debt management, but for traders, it matters. Buybacks free liquidity, suppress yields, and open the door for capital to rotate into risk assets. This week, that rotation spilled over into Bitcoin, giving bulls fresh ammo heading into October.
Analysts Call It Bullish for Bitcoin
Crypto commentator Ash Crypto has described the announcement as bullish for digital assets. Debt buybacks ease funding pressures and could create expectations of looser financial conditions.
In times when traditional assets appear stretched, investors often turn to alternatives such as Bitcoin, which benefits from its fixed supply and decentralized nature.
Meanwhile, historical patterns support this argument with data from CryptoQuant showing that Bitcoin tends to rally strongly in the fourth quarter, a phenomenon dubbed “Uptober.” The Treasury’s buyback could add to that mix.
Not Everyone Buys the Hype
Market analyst Stephan explained that buybacks are primarily a liquidity management tool and do not alter America’s overall debt burden, now approaching $37 trillion.
The bullish impact on Bitcoin only holds if the move feeds into broader monetary easing, he said, adding that the enthusiasm around such announcements can overstate the immediate effect.
Related: Galaxy Digital CEO: Trump’s Fed Pick Could Spark Bitcoin $200K Rally but Threatens U.S. Stability
While sentiment may turn positive, the structural debt issues remain unresolved, meaning the broader fiscal context still weighs heavily on markets.
On-Chain: Bitcoin Accumulators Step Up
According to Glassnode, mid-sized Bitcoin holders, those with between 10 and 1,000 BTC, are in strong accumulation mode. This buying activity comes even as earlier whale selling pressure has eased.
Smaller holders remain neutral, indicating that capital-rich investors are leading the charge. The accumulation aligns with the Treasury’s move and seasonal optimism, reinforcing a narrative of renewed demand.
Related: Q3 2025 Crypto Recap: Bitcoin ETFs, U.S. Laws, and Stablecoins Surge
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