Crypto News: Why the Treasury’s Buyback Sparked a Bitcoin Rally

                 From The Editor
                

Managing Editor’s Note: The Anthropic IPO is coming… an estimated $2–$4 trillion listing. OpenAI is right behind. And 100 more breakthrough tech IPOs are already in the pipeline. All told, an estimated $8.5 TRILLION in new IPO wealth is about to flood the market.

The Wall Street Journal is calling it “The Great IPO Frenzy of 2026.” The last time anything close to this hit the market, it helped create more than 2.8 million first-time millionaires in America. That was an “all-in” moment…

Now our colleague Jeff Brown believes this current record-breaking IPO season is another. But during his 30 years inside Silicon Valley, he’s learned that Wall Street is going to get rich and regular folks are going to get left behind.

That’s why he’s holding The Super IPO Summit on September 16. He says it could be the most important briefing of his career. To join him, simply RSVP here with one click.

Why the Treasury’s Buyback Sparked a Bitcoin Rally

The Treasury's bond buyback stoked debasement fears and drove Bitcoin higher – but the chart is now flashing a warning at a key level. Here's what's next…

                              Written by
                             

Larry Benedict

                          Published on
                         

Sep 10, 2026

An announcement by the Treasury has ignited fears that money printing could return.

In order to stem the rise in longer-dated bond yields, Treasury Secretary Scott Bessent announced that a bond buyback program would triple in size from $2 billion to $6 billion.

Those amounts are tiny next to the $40 trillion in U.S. debt outstanding. But the move still sent the market a message: Public officials are willing to take action.

Rather than calming the bond market, assets geared toward something called “the scarcity trade” felt the most significant impact.

Here’s why the announcement sparked a rally in Bitcoin… and what the chart says about the next move.

Recommended Links

First, He Predicted the SpaceX IPO... Now His Next Big Call Could Make You Rich

In 2023, Jeff Brown predicted the SpaceX IPO – the biggest IPO in history – when Wall Street said it was impossible. Now he says SpaceX was just the starting gun: Anthropic, OpenAI and 100+ more tech IPOs worth an estimated $8.5 trillion are on the way. On Wednesday, September 16, at 8 p.m. ET, Jeff reveals Phase 2 of his IPO plan – a new AI-powered strategy that beat the market by an average of 1,740% over 12 months in 30 years of backtests. Register here with a single click.

(When you click the link, your email address will be automatically added to the event guest list.)

Legendary Trader Makes the Boldest Prediction of His 40-Year Career

In 2020, Larry Benedict told CNBC the market was about to fall. Few believed him. Within weeks, markets dropped 34% but his readers had the chance to make 62%. In 2022, he predicted the worst market in a generation. He went 11-for-11. One trade returned 117% in under a month. Now he's speaking out again… and he says what's coming makes both of those look like a warm-up. Click here to hear his new prediction and get his #1 ticker free.

The Debasement Trade

The Treasury’s buyback program invoked bad memories of quantitative easing (QE), the Federal Reserve’s program to create money in order to purchase Treasury securities.

QE increased the money supply, and investors questioned whether the Fed was simply printing money to cover government deficits.

This time, the Treasury’s move isn’t exactly QE. The buyback program is designed to issue short-term debt to buy back long-term debt, which means no net change in the money supply.

But that hasn’t stopped fears of currency debasement.

Currency debasement means a currency loses value – usually because the government expands the money supply.

While Treasury yields didn’t respond much to the announcement, the real impact was felt in the U.S. dollar and assets sensitive to its movements. Scarce assets tend to perform well when debasement fears are on the rise and the U.S. dollar is weakening.

Traditionally, precious metals were the primary beneficiaries of debasement fears. But in modern times, Bitcoin has emerged as the digital equivalent.

Bitcoin jumped following the announcement, and the chart tipped a rebound was in store. Now evidence is emerging that Bitcoin’s rally could be prone to a reversal.

Tune in to Trading With Larry Live

Each week, Market Wizard Larry Benedict goes live to share his thoughts on what’s impacting the markets. Whether you’re a novice or expert trader, you won’t want to miss Larry’s insights and analysis. Even better, it’s free to watch.

Visit us on YouTube to catch the latest!

Bitcoin Rally Losing Steam

Fears over currency debasement are delivering a boost to Bitcoin. But it was no surprise that a rally unfolded when it did.

The Bitcoin price area around $60,000 has been tested multiple times this year. It is also a key congestion zone tested numerous times in 2024. That makes $60,000 an important “make-or-break” level.

While Bitcoin was testing support, a positive momentum divergence formed. Take a look at the chart:

The shaded area shows the $60,000 support level. At the start of June, Bitcoin started testing support at “1.” A second test at “2” produced a lower low in price. But a positive divergence on the Relative Strength Index (RSI) showed downside momentum was fading.

That helped spark a rally, which picked up steam as Bitcoin surged above the 50-day moving average (MA – blue line) following the Treasury’s buyback announcement.

But the current move has left Bitcoin extended far above the 50-day MA. Meanwhile, a negative divergence is now forming in the RSI. That means Bitcoin is showing signs of a reversal lower.

Bond market intervention and QE fears will spark renewed volatility in Bitcoin. That means this is an asset to keep an eye on in the coming weeks.

For right now, the evidence suggests that Bitcoin’s rally has gone too far.

Happy Trading,

Larry Benedict
Editor, Trading With Larry Benedict

Get Instant Trade Alerts on Mobile!

Click the icon below from your mobile device to download The Opportunistic Trader app today for one-tap access to trade alerts, issues, and model portfolios for all of Larry’s services.

Available in the app store on Android and iPhone.