Bitcoin Pushes Past $67K After US Treasury Doubles Bond Buyback Operations, VanEck Sees Late-Stage Drawdown

• Bitcoin rose above $67,000 after the U.S. Treasury said it would at least double the size of long-end bond buyback operations.
• This would help push Treasury yields lower and boost risk assets.
• VanEck said 8 of 12 indicators on its bitcoin capitulation dashboard are flashing, suggesting the market is in late-stage drawdown and could be near a bottom.

Bitcoin (BTC) jumped above $67,000 on Wednesday after the U.S. Treasury announced that it would at least double the size of its long-end bond buyback operations, a liquidity boost that pushed yields sharply lower as on-chain data indicated a market near a bottom.

The Treasury announced that it was increasing the maximum size of buyback operations for nominal coupon securities in the 10-year-to-20-year and 20-year-to-30-year sectors from $2 billion to at least $4 billion per operation. The change will be effective September 9 through November 4, covering the remainder of the current refunding quarter. 

'All Roads Lead To BTC'

Analyst Will said on X on Wednesday that the Treasury was "intervening in unprecedented ways in the FX market" as interest payments and debt as a percentage of GDP both sat at record highs. “All roads eventually lead to $BTC,” he added.

Why Does It Matter?

US national debt stood at nearly $40 trillion, up $2.88 trillion from a year ago, according to data compiled by the government. Annual interest expense on publicly held debt now runs at roughly $1.11 trillion, with the average interest rate on marketable Treasury debt at 3.44% as of July. The 30-year yield had climbed above 5.3% earlier this month, its highest level in roughly 25 years, before retreating on Wednesday's buyback announcement.

James Lavish, who co-manages the Bitcoin Opportunity Fund and serves as an Independent Director for Strive Inc (ASST), called the development a sign that "the U.S. Treasury blinked," pointing to a chart showing the 30-year yield's persistent climb since March.

Bitcoin’s price was up nearly 5% in the last 24 hours. On Stocktwits, Bitcoin was among the top trending tickers at the time of writing. Retail sentiment around BTC moved to ‘bullish’ from the ’neutral’ zone, while chatter around it stayed at ‘normal’ levels over the past day.

VanEck Sees Late-Stage Drawdown

VanEck's latest report published on Tuesday explained that eight of 12 capitulation signals on the firm's Bitcoin dashboard were now firing, based on data through August 11, when BTC was trading near $63,549.

VanEck said the dashboard pointed to a late-stage drawdown and that the next accumulation phase could begin as early as September, based on historical cycle averages. Excluding the 2011 cycle, the last three bear phases averaged 12.7 months from peak to trough, according to the report. The current drawdown from Bitcoin's October 2025 all-time high was in its 10th month.

The firm said it had forecast a deeper peak in this cycle. The current drawdown of roughly 49% was well within past peak-to-trough declines of 78% to 94%, and VanEck said it preferred “to state that assumption plainly rather than hide it inside a threshold.”

Despite Wednesday’s rally, Bitcoin remains 45% below its record high of over $126,000 seen in October last year.

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