Bitcoin ripped from $64,400 to above $71,000 in under 24 hours, clearing that level for the first time since early June. The move came as the U.S. Treasury pledged to at least double its liquidity-support buybacks for longer-dated debt and President Trump paused tariffs on Canada, a one-two punch that sent the dollar lower and pushed traders into risk assets.
Why the dollar cracked
The Treasury's announcement landed late Tuesday: it will buy back at least $4 billion per operation of longer-dated government debt, up from $2 billion, running from September 9 to November 4. That's a direct shot at the 30-year yield, which had hit 5.34% earlier in the day — a near 20-year high. After the news, the yield slid to 5.20%, the dollar weakened, and bitcoin caught the bid.
Trump also paused tariffs against Canada and later said a deal would cut some from 25% to 15%. He announced economic warfare against Iran, but with no new physical attacks threatened, the market read the whole package as less hawkish than feared.
Glassnode flags a 5.8 sigma move
Glassnode called it the most impressive daily close since February, with no prior crash — a 5.8 sigma move to the upside, the largest since October 2023. That's not just a bounce off a low; it's a violent repricing, and it happened without the usual shakeout first.
ETFs finally get their day
Bitcoin ETF daily net inflows hit $517 million, the highest since early May. To put that in perspective, it exceeded the entire month of July's total of $172.43 million. One day beat a month. That kind of flow data tends to feed on itself, at least in the short term.
Futures open interest hits a 2023 high
Open interest in bitcoin futures reached its highest level since 2023, surpassing the levels seen before the October 2025 liquidation event that topped $19 billion. That's a double-edged sword: leverage is back, and so is the risk of a violent unwind. But for now, the positioning is clearly long.
The next concrete test comes when the Treasury's expanded buyback program actually starts on September 9. If yields keep falling, the dollar's slide could extend, and bitcoin might have more room to run. If the buybacks underwhelm, Tuesday's surge could look like a one-day wonder.
