Why Did the Bitcoin Price Suddenly Spike Toward $70K?

Bitcoin’s price suddenly jumped toward $70K earlier today as investors reacted to an unexpected intervention in the US government bond market.

As CryptoPotato reported, the price tapped almost $70,000, leaving more than $1 billion in liquidated positions across the derivatives market. This is pretty much the highest BTC has traded since the middle of June.

The catalyst for that move appears to have been an announcement on behalf of the US Treasury Department, which will be doubling (at least) the maximum size of liquidity-support buybacks for longer-dated government debt, raising them from $2 billion to at least $4 billion per operation.

The changes will start on September 9th and remain in place through November 4. Why the Treasury’s Move Matters for Bitcoin The announcement came after increased stress in the bond market.