Treasury buybacks could ease Bitcoin headwinds, strategist says

Regular US Treasury buybacks of long-term government debt could ease a macroeconomic pressure weighing on bitcoin, according to Mark Connors, chief investment officer at Risk Dimensions.

Treasury Secretary Scott Bessent said Thursday that the government could increase buybacks of long-dated bonds beyond the $4 billion previously announced. The 10-year Treasury yield was around 4.68%, while bitcoin traded near $72,000.

Connors said buybacks could support bond prices and contain yields, making government debt less attractive relative to risk assets. He expects Treasury support could eventually reach $10 billion to $30 billion a month.

Connors said bitcoin could reach $180,000 in the current cycle and as high as $360,000 through 2030. He also identified $72,000 as a key level because leveraged short positions could be forced to close if bitcoin moves higher.

He warned that bitcoin could fall from $72,000 if the Clarity Act does not advance by around Sept. 15.