Bitcoin Surges Above $71,000 as Raoul Pal Says It's The 'Bessent Put' and 'The Signal Is Enormous'

Bitcoin (CRYPTO: BTC) on Thursday climbed another 4% to $71,800 as macro investor Raoul Pal called Wednesday’s Treasury move a historic turning point.

What Raoul Pal Calls the ‘Bessent Put’

Pal posted on X that the Treasury’s decision to double long-end bond buybacks came the day after the 30-year yield hit a 19-year high at 5.33%, and the timing was the whole point.

For the first time, the fiscal authority stepped in to defend the long end of the bond market within 24 hours of a major yield spike, without waiting for the Fed to act.

“The extra dollars are small. The signal is enormous,” Pal wrote. 

He argued that buybacks pull old, hard-to-sell bonds off bank balance sheets and replace them with short-term bills that the banking system can easily absorb. 

That swap reduces long-term yield volatility, which in turn raises the value of every Treasury sitting as collateral in the financial system. The result is a liquidity easing that happens without the Fed printing a single dollar.

Pal connected the move to the joint US-Japan yen intervention earlier this month and new dollar swap lines across Asia, arguing all three actions point to the same goal: 

• Keep long-term yields from spiraling higher
• Bring the dollar lower
• Pull Japan and eventually China back as buyers of US Treasuries