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U.S. Treasury takes bold financial step, implements multi-billion dollar initiative

2026-09-07 00:22:43
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The U.S. Treasury Department takes bold financial measures to launch a multi-billion-dollar treasury bond repurchase program

The U.S. Treasury Department announced that it will officially launch a major treasury bond repurchase program starting on September 7, 2026. According to Treasury Secretary Scott Bessent, the department will operate weekly, with a ceiling of $14.5 billion per operation and could reach $16.5 billion in individual sessions. The move highlights market expectations that liquidity conditions in financial markets are about to change.

How will liquidity expectations change?

The most intensive phase of the plan is scheduled for September 9. The Treasury has set a cap of $4 billion per repurchase, focusing on long-term securities with maturities of 10 to 30 years. By the end of this month, the Treasury aims to withdraw approximately $38.25 billion in bonds from the market. At the same time, the Federal Reserve has set aside as much as $2.122 billion to supplement short-term Treasury bonds through its main reinvestment program. These strategies collectively point to a focus on short-term cash flow.

Can Bitcoin and XRP hit new highs?

Especially in the cryptocurrency field, Bitcoin and XRP are receiving widespread attention. In early September, Bitcoin was trading slightly below the key psychological threshold of $80,000. With a large number of short positions concentrated between $79,500 and $82,000, market discussions believe that buying behavior by major brokers may accelerate short covering and push Bitcoin to new local highs.

On the XRP side, institutional inflows are reported to be strengthening as its price approaches $1.45. Spot XRP ETFs in the United States have recorded net inflows of more than $1.66 billion. If this liquidity trend continues, market participants believe XRP has the potential to break through the $1.70 resistance level and retest the $2 barrier.

Overview of key data:

  • Bitcoin is testing the US$80,000 level, with short positions densely distributed in the US$79,500 to US$82,000 range.
  • XRP is approaching US$1.70, backed by more than US$1.66 billion in spot ETF inflows.

Regulatory Environment and Market Outlook

At the same time, liquidity injection coincides with the schedule of the CLARITY Act, an important legislative move this fall. The U.S. Senate is expected to vote on the regulatory plan before September 15, which may have a substantial impact on XRP prices due to changes in the regulatory climate.

Analysts emphasized that the Treasury's repurchase program is aimed at restructuring the debt structure rather than expanding the money supply, with a focus on converting long-term debt into short-term debt. Market observers pointed out that the move was aimed at stabilizing bond returns, but also warned that excessive economic support could force the Fed to keep interest rates high for longer. This may limit the cryptocurrency market's upside potential in the medium term.

Despite this, short-term attention remains focused on expected cash flow on September 9. Bitcoin and XRP's response to this surge in liquidity will be a key factor in determining the market's direction in the fall of 2026.

Disclaimer:

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