U.S. Treasury Repurchases $142M in Bonds — What It Means for Crypto Markets

The US Treasury Department recently conducted a debt buyback operation and purchased $142 million in government debt. The experts claim that the buyback initiated on November 13, 2025, is the first buyback of its kind over two decades. The U.S. authorities have officially confirmed that the move from the U.S. Treasury is part of a broader plan to manage the national debt more efficiently and effectively. 

Industry-leading commentator on the global capital, The Kobeissi Letter, confirmed that it was official that the US government had borrowed over $619 billion of debt during the 43-day government shutdown. They noted that this amounted to over $14.4 billion per day while the federal government was shut down and stated that there was only one thing that never stopped in the US government: deficit spending.

According to the latest reports, the United States is now spending 40% more than it takes in, which is currently mounting the pressure and financial heavyweights on the American Fiscal trajectory. They conducted the buyback of a certain government bond, termed TIPS (Treasury Inflation-Protected Securities), and these specific bonds are scheduled to mature between February 2040 and February 2055. All the large financial institutions that have the right to trade directly with the Federal Reserve were summoned to sell these bonds back to the government.  

Ray Dalio, the Bridgewater founder, warned about this situation and stated that he wanted to explain in a nutshell why the US debt situation was at a very dangerous inflection point. He put it simply by saying that the US was now spending 40% more than it was taking in. He noted that this accumulation of debt service payments had spiraled over decades and was starting to squeeze away buying power. He added that if one ran the numbers, there was an imbalance between how much debt had to be sold, who the buyers were, and the likelihood of it all being bought. He expressed that together, these two influences were why he worried about suffering an economic heart attack in the near future. He also added in an interview with Fox Business that they were operating with a $7 trillion spending and a 5 trillion dollar intake, noting that they were spending 40% more than they were taking in, and that this was a chronic problem.

How Does America’s Debt Crisis Affect Crypto?

According to crypto experts, the lower treasury yields resulting from the recent buybacks can ease the pressure on risk assets like crypto, making them more attractive to invest in. Improved liquidity in traditional markets will force investors into digital assets, especially when institutional investors rebalance their investment portfolios. The experts also believe that the buyback will expose the government’s responsiveness to market stress, and it can stabilize investor sentiment across different asset classes. 

Crypto analysts have noticed that Bitcoin and Ethereum experienced slight gains after the announcement, and they also claim that a positive reaction can also be seen among crypto traders. They have pronounced that the move from the U.S Treasury might encourage investors and trigger more institutional interest in crypto, especially after traditional assets become less volatile. Donald Trump previously announced that crypto took a lot of pressure off the dollar and that it did a lot of good things, stating that they were making the US the Bitcoin superpower and the crypto capital of the world. It is clear that the Donald Trump administration is considering cryptocurrency as a viable hedge against the mounting national debt in the United States economy. 

Also Read: Taiwan Considers Adding Bitcoin to National Reserves in Policy Shift