Gold, Bitcoin Rally After Treasury Doubles Long-Term Bond Buybacks

The U.S. Treasury said Aug. 19 it will double the amount of longer-term government bonds it buys back, from $2 billion to at least $4 billion per operation starting Sept. 9, aiming to provide "greater liquidity support" for long-dated Treasurys. The move follows a sharp bond selloff that pushed the 30-year yield to its highest level since 2007, and further guidance on future purchase sizes is expected at the Treasury's next quarterly refunding on Nov. 4.
Bitcoin (BTC) climbed more than 5% over 24 hours to around $68,147, according to Decibel, though it remains well below its October 2025 record above $126,000 after a selloff that roughly halved its value. Gold rose about 2.7% to $4,485 per ounce, gaining more than $100 on the day, while silver gained roughly 2.5% to $65.59 per ounce.
Unlike Federal Reserve quantitative easing, Treasury buybacks do not create new money; they repurchase older government debt to improve trading conditions and liquidity in less actively traded securities. Still, increased bond-market liquidity can influence broader financial conditions that investors weigh when positioning in assets like gold and Bitcoin.
Crypto markets also had a separate potential catalyst Wednesday, as the White House was expected to host executives from Coinbase, Ripple, Chainlink, Andreessen Horowitz, Paradigm, and other crypto and prediction-market firms alongside President Trump and CFTC Chair Mike Selig.