Bitcoin Jumps on Expanded US Long-Bond Buybacks, ETF Inflows; PCE and Jackson Hole in Focus

Forecast Trend Report by Period

Last week's sharp rally in Bitcoin was driven by the U.S. Treasury's expanded buybacks of long-term government bonds and fresh inflows into spot cryptocurrency exchange-traded funds, according to an analysis. This week, investors are focused on the U.S. personal consumption expenditures price index, Nvidia earnings and a Jackson Hole speech as the market's main catalysts.

BlockBeats reported on August 24 that QCP Capital said in a market report that Bitcoin rose more than 20% last week, its strongest weekly gain since March 2024. The cryptocurrency briefly climbed to about $79,500.

QCP said the advance coincided with a sharp turn in the U.S. Treasury market. The 30-year Treasury yield approached 5.3% at one point, the highest since 2007. The Treasury later announced that, starting September 9, it would increase the size of each long-bond buyback operation to at least $4 billion from a previous cap of $2 billion to support liquidity.

After that announcement, long-term Treasury yields fell and the dollar weakened, lifting both Bitcoin and gold, QCP wrote. The firm said position adjustments and short covering initially accelerated the rally, and spot buying later strengthened.