Buy back bonds and BTC price

[newbtc101]

I am wondering if the US Treasury deciding buy back US bonds will have a major effect on btc price.

How likely this buy back will even happen?

"The U.S. Treasury Department is asking primary dealers of U.S. Treasuries whether the government should buy back some U.S. government bonds to improve liquidity in the $24 trillion market."

Source:

https://www.reuters.com/markets/us/us-treasury-asks-major-banks-if-it-should-buy-back-us-government-bonds-2022-10-14/#:~:text=Oct%2014%20(Reuters)%20%2D%20The,in%20the%20%2424%20trillion%20market.

[jackg]

The UK has £1.6 trillion in "gilts" and the central Bank offered to buyback up to £65billion and barely anything happened to the markets (except currency and stock market boosts) - perhaps the US could see the same but I think these were mostly from the bank intervening and it's unclear whether it was just that that boosted confidence and not the buybacks (especially since the £65bn limit was nowhere near being utilised - it was about half by the end of the first week so they might've paid up to £40bn on it I can't find where the data is).

[newbtc101]

The UK has £1.6 trillion in "gilts" and the central Bank offered to buyback up to £65billion and barely anything happened to the markets (except currency and stock market boosts) - perhaps the US could see the same but I think these were mostly from the bank intervening and it's unclear whether it was just that that boosted confidence and not the buybacks (especially since the £65bn limit was nowhere near being utilised - it was about half by the end of the first week so they might've paid up to £40bn on it I can't find where the data is).

I also did not notice btc price change after that but the US market might be a bit more "influential" in terms of a potential boost. Idk

[Tytanowy Janusz]

I also did not notice btc price change after that but the US market might be a bit more "influential" in terms of a potential boost. Idk

Yep. US is much more "influential".

"As of 2021, the size of the bond market (total debt outstanding) is estimated to be at $119 trillion worldwide and $46 trillion for the US market"
https://en.wikipedia.org/wiki/Bond_market

Its close to 40% while UK is only around <$2T - 1.5%

So I can assume that US bond market is more than 25 times more "influential". Will it affect bitcoin price? I think that there are not many things stronger than 'we print again' announcment.

[newbtc101]

I also did not notice btc price change after that but the US market might be a bit more "influential" in terms of a potential boost. Idk

Yep. US is much more "influential".

"As of 2021, the size of the bond market (total debt outstanding) is estimated to be at $119 trillion worldwide and $46 trillion for the US market"
https://en.wikipedia.org/wiki/Bond_market

Its close to 40% while UK is only around <$2T - 1.5%

So I can assume that US bond market is more than 25 times more "influential". Will it affect bitcoin price? I think that there are not many things stronger than 'we print again' announcment.

So how likely this buy back will even happen? What do you think? Merely a speculation?

[btc_angela]

^^ I think it's mere speculation at this point. Bullish? nah, we just had another bounce back from $18k. We haven't get back to the $20k'ish, which for me is the biggest support that we need to achieved.

And there could be another reasons for the jump right now and not necessary this news. But in any case, every market is connected and there could be 'short' term effect, but not necessarily very bullish.

[adaseb]

This is the treasury and not fed reserve. The fed reserve prints all the money they want but with the treasury it’s different. Don’t know whether this is bullish or not.

I mean if they buy bonds then the yields will go down but will it be good for inflation? Probably not. I think they are just doing this to make sure there isn’t some nasty liquidity crunch in the bond markets.