Bitcoin climbed sharply above $68,000 on Wednesday, posting a nearly 3% gain within 24 hours as investors reacted to announcements from the US Treasury about a major policy move in government debt repurchases.
US Treasury announces expanded buybacks
The Treasury Department said it will more than double the size of its regular government debt repurchases, a decision made in response to rising yields in US fixed income markets. According to the department, bond yields have surged to levels not seen in nearly two decades, pressuring financial markets and prompting action to boost market liquidity.
“These increased buyback operation sizes reflect Treasury’s desire to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants, as evidenced by the significant volume of high-quality offers Treasury routinely receives in longer-dated buyback operations,” the department stated.
Treasury officials indicated that the doubling of buybacks is designed to support market liquidity in longer-term government bonds, where participation remains robust even as yields have spiked.
The buyback program is intended to absorb more bonds from the market, alleviating recent pressure and stabilizing yields. As yields fell after the announcement, riskier assets such as Bitcoin attracted renewed attention from investors.
ETH
SOL
BSC
ROBINHOOD
USDT
AAPLMini dictionary: US Treasury Department, the executive department of the US federal government responsible for managing government revenue, issuing Treasury bonds, and overseeing federal finances.
Market response and Bitcoin’s performance
At 10:30 a.m. in New York, Bitcoin traded at $68,473, after touching an intraday high of $68,982. Both stocks and cryptocurrencies rallied as the US dollar weakened sharply in response to the policy move. Bitcoin, widely recognized as the largest digital asset by market value, has now risen over 3% for the week and has reversed a month of stagnant performance to notch a similar gain over the past 30 days.
Lower long-term bond yields typically decrease the opportunity cost of holding non-yielding assets like Bitcoin or gold, making them more attractive to investors seeking returns beyond traditional fixed income instruments. This shift in sentiment often leads to increased demand for so-called “risk-on” assets.
| Asset | 24h Change | Week Change | 30-Day Change |
|---|---|---|---|
| Bitcoin | +3% | +3% | +3% |
Bitcoin followed a similar trajectory as stocks in response to the announcement, with both sectors benefitting from the shift in market dynamics. Meanwhile, the US dollar saw notable weakness, further fueling the asset’s move.
Volatility, recent history, and analyst view
Despite recent turbulence, Bitcoin’s volatility has reached historic lows. In 2025, the asset experienced its least volatile year since inception. According to Fidelity, one of the largest asset managers with a significant presence in digital asset investment products, Bitcoin’s current volatility is now lower than during 98.5% of all days across its 17-year history.
Bitcoin last reached an all-time high of $126,080 in October before pulling back, but its corrections remain milder than in previous bear markets. Market participants continue to watch the interplay between US policy decisions, bond yields, and digital asset prices for signals of future trends.
The recent moves highlight how quickly $BTC can respond to macroeconomic shifts, especially in periods of high interest in government bond markets.
