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Scott Bessent Leads Treasury Efforts to Control Bond Yields as Bitcoin Surges Toward $80,000

Treasury Secretary Scott Bessent is leading a strategic effort to stabilize soaring bond yields by doubling the purchase of longer-dated government debt. The administration announced that the Treasury would increase the size of bond buybacks, a move intended to bring yields under control and revive the "debasement trade." This intervention has fueled a significant rally in the cryptocurrency market, with Bitcoin reaching near $80,000 for the first time since May. While the administration's actions have been cheered by crypto traders, they have faced criticism from billionaire investor Stanley Druckenmiller. Druckenmiller argued that the government should allow the bond market to speak for itself rather than suppressing prices against fundamentals. He suggested that addressing the $1.8 trillion deficit and reforming entitlements are the only durable ways to lower long-term yields. Despite these mixed views, institutional demand remains strong, with US spot Bitcoin ETFs recording significant net inflows. Analysts are currently monitoring upcoming monetary policy signals to determine if the current rally is a tactical bounce or a durable bull market.

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