Bitcoin Breaks Above $78,000 as Markets Price in Stronger YCC Risks

ChainCatcher cited CoinDesk as saying the U.S. Treasury will raise the per-session cap for long-term Treasury buybacks to at least $4 billion from $2 billion, effective from September 9 through November 4. The market has viewed the step as a liquidity-management maneuver akin to an "Operation Twist 2", funding needs via increased short-term issuance rather than outright "money printing." While officials stressed the move is neither quantitative easing (QE) nor yield curve control (YCC), investors are reading it against a backdrop of long-end yields near two-decade highs and persistent fiscal deficits. The adjustment is being interpreted as a signal of growing sensitivity to higher financing costs, reinforcing expectations that more forceful YCC could follow. Bitcoin jumped on the shift, briefly pushing above $78,000 and posting a 23% weekly gain. Gold firmed and the U.S. dollar weakened, while short covering added to market volatility.