The U.S. Treasury enters the active phase of a $14.5 billion weekly bond buyback program on Monday, Sept. 7, 2026, with the bulk of purchases landing Wednesday, Sept. 9. Traders are watching whether the resulting liquidity triggers a short squeeze in Bitcoin, which sits just below $80,000, while XRP climbs toward $1.45 ahead of a Sept. 15 Senate vote on the CLARITY Act.
The U.S. Treasury Department, led by Secretary Scott Bessent, starts the active phase of its government debt buyback program on Monday, Sept. 7, 2026. The weekly limit on operations will amount to $14.5 billion, and the maximum volume of Treasury sessions could reach $16.5 billion. The scale of the operation has sparked discussion across financial markets about a second round of the crypto rally, particularly for Bitcoin and XRP.
Bitcoin sits at $80,000 chokepoint
The bulk of the operations is scheduled for Wednesday, Sept. 9, when the Treasury doubles its buyback limits for long-term securities maturing in 10 to 30 years, from $2 billion to $4 billion per session. In total, the department plans to remove approximately $38.25 billion worth of bonds from the market in September. The Federal Reserve will simultaneously allocate up to $2.122 billion to purchases of short-term Treasury bills as part of its reinvestment of principal.
Officials describe the injections as routine, but the cryptocurrency market approaches Sept. 9 in a state of extreme technical tension. Traders expect the cash the Treasury provides to major banks in exchange for older bonds to fuel a breakout from prolonged trading ranges. At the start of September, Bitcoin trades just below the psychological $80,000 level, having formed a dense concentration of short-liquidation levels between $79,500 and $82,000. Any impulse from primary dealers on Wednesday could force the closure of short positions and push the price toward new local highs.
XRP climbs toward $1.45 ahead of Senate vote
Capital is meanwhile accumulating in XRP as the token approaches $1.45 amid record institutional inflows. U.S. spot XRP ETFs have recorded net inflows exceeding $1.66 billion. The Treasury's liquidity injection coincides with the main fundamental catalyst of the fall: on Sept. 15, the U.S. Senate will hold a key vote on the CLARITY Act. Traders are pricing in a scenario where fresh dollars help XRP break through resistance at $1.70 and open a path toward the psychological $2 mark.
Analysts warn against calling it QE
Market analysts warn against equating the Treasury's current program with full-scale quantitative easing. The Treasury is not creating new money out of thin air but merely replacing long-term obligations with short-term borrowing to stabilize the government bond market, where yields remain near multiyear highs. There is also a medium-term risk: if the buybacks overstimulate the economy, the Federal Reserve could be forced to keep interest rates higher for longer, eventually limiting the crypto market's growth potential.
Nevertheless, short-term market expectations remain focused on the actual liquidity inflow on Sept. 9. How Bitcoin and XRP react to that impulse will shape the market's direction through the fall of 2026.
Source: U.Today
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