US Treasury's $14.5 Billion Bond Buyback, Divergent Reactions for BTC and XRP

The US Treasury conducted a $14.5 billion bond buyback in early September, leading to mixed market reactions for Bitcoin (BTC) and Ripple (XRP). This buyback is a restructuring of existing bonds rather than new liquidity injections. The Treasury announced an increase in the buyback cap for long-term bonds from $2 billion to at least $4 billion for 10 to 30-year bonds. The buyback schedule for the third quarter includes $12.5 billion on September 9 and $2 billion on September 10, totaling $14.5 billion. The maximum of $16.5 billion mentioned in some interpretations has not been confirmed. The Treasury's buyback is different from the Federal Reserve's quantitative easing and serves as a tool for managing the issuance and redemption structure of bonds. The New York Fed has been conducting approximately $17 billion in reinvestment purchases of bonds from August 14 to September 14. BTC rose to $81,759 in response to expectations of easing long-term interest rates. In contrast, XRP has a schedule related to the Senate cloture motion on September 15, and the recent ETF supply has shown different flows for BTC and XRP. The confirmed schedule includes a $12.5 billion buyback on September 9, a $2 billion buyback on September 10, and the Senate cloture motion procedure on September 15.

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