Bitcoin Drops to $76,000 Despite $6 Billion U.S. Treasury Buyback

Bitcoin fell to around $76,000 despite the U.S. Treasury's expansion of its long-term Treasury buyback program. The announced buyback amount did not meet market expectations, leading to a rise in U.S. Treasury yields and a continued lack of investor confidence in risk assets within the cryptocurrency market.

According to CoinMarketCap, as of 8 a.m. on September 11, Bitcoin was trading at $76,936, down 1.38% from the previous day.

Major altcoins also experienced declines. Ethereum dropped 0.18% to $2,449, while Ripple (XRP) fell 3.08% to $1.34. Solana decreased by 1.80% to $99.47, and Binance Coin (BNB) was down 1.08% at $712.47.

Although the U.S. Treasury announced a significant increase in the buyback program, it failed to meet market expectations. On September 9, the Treasury revealed plans for a buyback of up to $6 billion for 10- to 20-year Treasury bonds, three times the amount of the previous long-term buyback.

However, some on Wall Street had anticipated a buyback of $7 billion to $8 billion, leading to disappointment in the market following the announcement. Despite the expanded buyback, U.S. Treasury yields actually rose.

Steven Zeng, a strategist at Deutsche Bank, commented, "The Treasury increased the amount threefold, but it fell short of the shock investors were hoping for, resulting in a disappointed market reaction."

Meanwhile, in the domestic market, Bitcoin also showed weakness. As of 8 a.m. on the same day, Bitcoin was trading at 1,021,300 won on Bithumb, down 0.33% from the previous day. The 'Kimchi Premium,' which indicates the extent to which domestic prices are higher than international prices, was recorded at 1.33%.