The cryptocurrency market has experienced one of its strongest upward pushes for 2026 in the last few days. Bitcoin (BTC) went from around $61,000 to the $80,000 mark under a week’s time. CoinGecko data shows that BTC’s price has surged more than 24% in the weekly, 14-day, and monthly charts. The cryptocurrency market upswing comes amid increased liquidity from higher bond buybacks. Let’s discuss if the crypto market will benefit from the buybacks as opposed to the stock market.
Cryptocurrency Market To Benefit From Higher Liquidity While Stocks Slump?
The US Treasury recently decided to double long-term bond buybacks to at least $4 billion. US Secretary of the Treasury Scott Bessent’s decision could lead to more liquidity being pumped into the financial market may favor high-risk assets such as cryptocurrencies, as opposed to the stock market.
While the cryptocurrency market is making a substantial upward push, the stock market is showing no signs of a rally. Major stocks closed lower on Monday, August 24, 2026, while Bitcoin (BTC) maintained its upswing.
The cryptocurrency market rally was also supported by President Donald Trump’s recent While House event. Trump invited several CEOs and founders from the sector to further push his administration’s pro-crypto stance. Trump also stated that the US may purchase a large amount of Bitcoin (BTC) and other cryptocurrencies. The statement led to a further boost in investor sentiment.
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While market wide rally is welcome, there are challenges that may pose a threat. The liquidity could support the cryptocurrency market in the short term, it does not mean a general quantitative easing. The US Treasury would eventually need to refill its cash account, which could redirect liquidity away from the cryptocurrency market.
Additionally, inflation in the US remains well above the Federal Reserve’s 2% target. Although CPI (Consumer Price Index) figures have dipped, costs continue to remain high. There is a chance that the Federal Reserve will raise rates after its next meeting. Higher rates could lead to capital moving away from the cryptocurrency market.