Treasury's $935B Cash Pile Boosts Bitcoin to $79K

Treasury Secretary Scott Bessent doubled the maximum debt buyback size to $4 billion, a signal the department intends to draw down its $935 billion cash buffer. Bitcoin climbed near $79,000 within hours of the announcement. Ethereum traded above $2,490. Solana held around $97.

Buybacks put cash into bondholders' hands. The Treasury purchases its own bonds on the open market, handing over liquidity that investors then redeploy. Doubling the size of individual buyback rounds – from $2 billion to $4 billion – suggests an aggressive posture on liquidity provision, traders said.

The Treasury General Account, the government's main checking account, held $935 billion at last count. Spending that balance pushes reserves into the banking system, where banks can lend or invest them. The effect is akin to a stealth stimulus, with no rate cut required.

Bitcoin rose 2.6% in the 24 hours after the announcement and 24.9% over the past seven days, according to CoinGecko. Ethereum gained 1.9% on the day, while Solana added 1%. The broader rally swept through smaller tokens. Quantum-resistant coins, a niche subsector, jumped 60.2% over the week, the data showed.

Sentiment shifted sharply. The Fear & Greed Index, compiled by Alternative.me, climbed to 73 from 31 a week earlier, swinging from Fear to Greed in seven days. That kind of flip typically accompanies a change in macro narrative rather than a mere technical bounce, several traders said.