That matters for bitcoin because high Treasury yields can pull capital toward government bonds and away from risk assets. Buybacks can support bond prices and help contain yields, potentially removing some of that pressure.
Connors said the initial purchases remain small but he expects Treasury support could eventually reach between $10 billion and $30 billion a month, far beyond the $4 billion announced by Bessent.
The move has also changed his outlook for bitcoin. Connors had expected $BTC to remain subdued until November as it followed its traditional four-year cycle. He is now less certain that investors will have to wait that long.
He believes another potential step could involve changes to the supplementary leverage ratio, or SLR, which affects how much Treasury debt banks can hold relative to their capital. Easing those constraints could give banks more room to absorb government bonds.
“When that happens, that’s when bitcoin starts to seek that first $180,000 price threshold,” Connors said. His target range for the cycle through 2030 is $180,000 to $360,000.
In the immediate term, $72,000 could carry added significance because of how crypto traders are positioned.
Charles Schwab director of crypto research Jim Ferraioli said earlier modeling showed a large concentration of leveraged bitcoin shorts around $72,000.
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