1 month ago
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Key Takeaways
- Major cryptocurrencies are digesting August’s sharp rally.
- Their charts share a pause, not one pattern.
- Bitcoin has retained the strongest short-term structure.
- XRP has surrendered more of its advance.
- Warsh’s message could move yields and risk appetite.
What changed after the August 19 rally
The current pause follows an August rally that accelerated after the US Treasury doubled the maximum size of selected long-term bond buybacks. The department raised the ceiling for purchases of eligible 10-to-30-year securities from $2 billion to at least $4 billion per operation. Long-dated yields initially declined, while crypto and gold moved higher.
The announcement was an important catalyst, though the programme cannot account for the entire advance. Treasury designed the buybacks to improve liquidity in older government securities. They do not constitute a new Federal Reserve asset-purchase programme, and the $4 bill...
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