Treasury buyback cap jump to $4B lifts Bitcoin, Ether, Solana

Treasury buybacks work like this: the government repurchases its own previously issued bonds on the open market. Doubling the cap to $4 billion per operation means the Treasury will absorb more supply of older, less liquid bonds. That pushes bond prices up and yields down, especially on the long end of the curve, traders at a New York based hedge fund said.

Lower long-dated yields reduce the discount rate applied to future cash flows. Growth-sensitive assets become more attractive on a relative basis. The 10-year yield dropped after the announcement. The US dollar also weakened alongside the yield decline, a combination that historically correlates with crypto rallies, traders said.

The Fear & Greed Index moved from 27 last week to 46. The shift from fear to neutral territory suggests buyers are stepping back in, though the index remains below levels that would signal outright greed. A trader at a digital asset market maker said the sentiment swing