US Treasury's $2 billion bond buyback gives Bitcoin a chance for liquidity for an upward rally.
- Treasury's $2 billion bond buyback frees up liquidity, fueling Bitcoin's Uptober rally.
- Bitcoin surpassed the $120,000 mark thanks to ETF inflows and strong accumulation among mid-sized holders.
- Analysts' opinions on the consequences of the buyback are divided: by the end of the year, BTC is predicted to reach $160,000–$200,000.
On October 2, the US Treasury purchased $2 billion in long-term bonds, with settlements scheduled for October 3. The purchase covered bonds maturing into the 2040s and 2050s, reducing supply and demonstrating confidence in US financial stability.
This may seem like routine debt management, but it's crucial for traders. Share buybacks free up liquidity, reduce yields, and pave the way for capital to be transferred to riskier assets. This week, this rotation has spilled over into Bitcoin, giving bulls renewed momentum heading into October.
Analysts call this a bullish trend for Bitcoin.
Crypto commentator Ash Crypto called this statement optimistic for digital assets. Debt buybacks ease funding pressure and could create expectations of more favorable financial conditions.
BREAKING: 🇺🇸 US TREASURY JUST BOUGHT BACK $2,000,000,000 OF ITS OWN DEBT.
BULLISH FOR CRYPTO! pic.twitter.com/3F0Xz8yPLC
— Ash Crypto (@Ashcryptoreal) October 3, 2025
In times when traditional assets seem limited, investors often turn to alternatives like Bitcoin, which benefits from its fixed supply and decentralized nature.
Meanwhile, historical trends support this argument: CryptoQuant data shows that Bitcoin typically experiences strong gains in the fourth quarter—a phenomenon dubbed “Uptober.” Treasury buybacks could amplify this effect.
Not everyone believes the hype
Market analyst Stefan explained that buybacks are primarily a liquidity management tool and do not change America's overall debt burden, which currently approaches $37 trillion.
Buybacks are basically a liquidity management tool. Treasury swaps older bonds for cash or shorter-term paper to smooth supply. It can ease near-term funding pressure, but it doesn't change the underlying debt load.
For crypto, the “bullish” angle only holds if this signals…— Stephan (@stephan_wh) October 3, 2025
He said the positive impact on Bitcoin would only last if the move was backed by broader monetary easing, adding that the enthusiasm surrounding such announcements could overstate the immediate effect.
Read also : Galaxy Digital CEO: Trump's Fed pick could trigger a $200,000 Bitcoin rally, but threatens US stability
While sentiment may be positive, structural debt issues remain unresolved, meaning the broader fiscal context continues to weigh heavily on markets.
On-chain: Bitcoin accumulators are gaining momentum
According to Glassnode, mid-sized Bitcoin holders, those holding between 10 and 1,000 BTC, are in active accumulation mode. This buying activity continues even though the previous selling pressure from whales has eased.
The Trend Accumulation Score highlights a shift in recent days. Mid-sized $BTC holders are accumulating strongly, whale distribution has moderated, and smaller entities remain neutral. These points to fresh structural demand emerging despite continued large holder selling. pic.twitter.com/KnqpCdN9qx
— glassnode (@glassnode) October 3, 2025
Smaller holders remain neutral, indicating that investors with larger capital are leading the movement. The accumulation of funds coincides with the Finance Ministry's decision and seasonal optimism, supporting the forecast of renewed demand.
Read also: Cryptocurrency Outlook for Q3 2025: Bitcoin ETFs, US Laws, and the Rise of Stablecoins
Source: cryptonews.net
