Why does the U.S. Treasury buying bonds make Bitcoin surge 20%+ in just one week? Bloomberg ETF analyst Eric Balchunas directly called the recent Treasury buybacks by the U.S. government a 'major catalyst' for Bitcoin during a show. What’s the connection between the U.S. government buying its own bonds and BTC? The U.S. Treasury just announced that it’s doubling the single buyback limit for 10–30-year long-term bonds from $2 billion to at least $4 billion. The market immediately started trading on one thing: the U.S. can no longer completely ignore the issue of excessively high long-term interest rates, and policies are now actively providing liquidity to the bond market. And the capital’s reaction was swift: Bitcoin shot up from around $64,000 to nearly $80,000 in one go, a weekly gain of about 25%. Last week, U.S. spot Bitcoin ETFs absorbed nearly $2 billion, making it one of the strongest weeks since October last year. Balchunas mentioned that not long ago, he referred to the gold market as a 'golden era,' with money pouring into GLD while Bitcoin was being ignored. Now, for the first time, there’s a clear shift—gold remains strong, but money is starting to flow back into Bitcoin ETFs. Treasury buybacks aren’t QE, nor is the Treasury printing money out of thin air. The issue is that the market is starting to trade on the future trajectory: No one wants to buy long-term bonds → Yields keep rising → U.S. government’s financing costs become increasingly painful → Treasury starts intervening in liquidity → If they still can’t suppress it, future policy interventions will only increase. Gold benefits from this monetary devaluation trade. Bitcoin essentially benefits from the same trade, just with a higher beta. So this time, BTC’s sudden jump from $60K+ to $80K might not just be a short squeeze. If funds keep flowing in next week or the week after, this won’t just be a simple rebound.