Foreign media reports that the U.S. Treasury Department will enter the active phase of its treasury bond repurchase program on September 7, with a weekly operation limit of $14.5 billion and a maximum single transaction size of $16.5 billion. As a result, the market is re-evaluating short-term liquidity changes, with attention focused on whether Bitcoin and XRP will take advantage of the situation to break through their current ranges.
September 9th is a key date of concern for the market.
The report mentions that the focus of this round of operations is on September 9th. The U.S. Treasury Department will increase the maximum amount of one-time repurchases of 10- to 30-year Treasury bonds from $2 billion to $4 billion. According to the plan, the Treasury Department intends to repurchase approximately $38.25 billion in bonds from the market in September.
At the same time, the Federal Reserve will also reinvest the maturing principal in short-term Treasury bills, with a maximum scale of approximately $2.122 billion. The article argues that this combination makes early September an important period for the market to observe changes in U.S. dollar liquidity.
Bitcoin approaches the $80,000 mark
Foreign media reports that Bitcoin is currently hovering below $80,000, with a relatively dense concentration of short stop-loss orders and liquidity in the range of $79,500 to $82,000. If major traders release more funds after operations by the Treasury Department, there could be a short covering in the market, driving prices to reach new highs in this phase.
The core conclusion of the article is that traders are viewing the Treasury Department's repurchases as a potential catalyst, hoping they will provide a new direction for the market after a long period of sideways movement. However, the report also points out that this expectation is more based on short-term capital flows rather than any changes in the fundamental aspects of crypto assets themselves.
XRP is facing both capital and policy catalysts simultaneously
XRP is another asset that was prominently mentioned. The report stated that as XRP approached $1.45, institutional capital inflows remained strong, and the net inflow of US spot XRP ETF had exceeded $1.66 billion.
The article also listed the key vote on CLARITY Act by the U.S. Senate on September 15 as one of the subsequent variables. The market is betting that if short-term liquidity improves and regulatory agendas advance, XRP could test the resistance level of $1.70 and further challenge the $2 integer mark.
Not a new round of quantitative easing
The report also reminds that this round of treasury bond repurchases should not be directly equated with a comprehensive quantitative easing policy. The reason is that the Ministry of Finance is not creating new money out of thin air, but rather adjusting the structure of debts with different maturities to alleviate the current high pressure on U.S. Treasury yields, which remain at a high level.
The article also mentions medium-term risks: if the repurchase operations provide a stronger stimulus to the economy, the Federal Reserve may be forced to maintain higher interest rates for a longer period, which could in turn suppress the performance of the crypto market in the future. In the short term, the actual funds injected on September 9th and their impact on the prices of Bitcoin and XRP remain the most closely watched points for the market.
