U.S. Treasury Buyback Size in Focus
Bitcoin (BTC) is trading sideways around $78,000. With the U.S. Treasury preparing to buy back as much as $6 billion of long-term government debt, analysts say investor sentiment could be influenced by the actual size of the purchases.
As of 9:38 a.m. on Sept. 10, Bitcoin was trading at 106.251 million won on Bithumb, down 0.53% from the same time the previous day.
At the same time, Bitcoin was trading at $78,264 on CoinMarketCap, down 0.46% from the same time the previous day. Bitcoin has traded sideways between $78,000 and $79,000 since the previous day.
According to Reuters on Sept. 9, the U.S. Treasury plans to buy back up to $6 billion of Treasury securities with remaining maturities of 10 to 20 years through a Treasury buyback program beginning Sept. 10.
The U.S. Treasury previously said last month that it would increase the size of its long-term Treasury buybacks to at least $2.67 billion going forward. That is more than double the previous limit of $1.33 billion per operation.
The move comes amid a recent rise in long-term Treasury yields. At the time, Bitcoin prices also rose as expectations grew that market liquidity could improve. Analysts therefore say the actual size of the Treasury purchases could affect Bitcoin’s price direction.
Forbes analyzed that if the actual purchase size exceeds market expectations, it could help curb rising long-term Treasury yields and create a more favorable environment for risk assets, including Bitcoin.
The market expects the purchases to total between $3.33 billion and $4 billion. Prominent trader Mel Mattison forecast that the purchases could increase to as much as $5.33 billion.
PayPal Launches Platform for Customized Stablecoins
Global payments company PayPal has launched a platform that allows companies to issue customized stablecoins.
According to CoinDesk on Sept. 9, PayPal built the stablecoin development platform PYUSDX in partnership with M0, a fiat-linked company, and MoonPay, a cryptocurrency payments company.
PYUSDX enables companies to design and issue their own stablecoins based on PayPal’s dollar stablecoin, PayPal USD (PYUSD).
Through the platform, PayPal plans to capture demand for stablecoins tailored to individual companies’ payment and rewards systems and expand its blockchain-based payments business.
Bitcoin Rises 22%, but Mining Companies Underperform
Bitcoin (BTC) prices have partially rebounded, but mining companies’ performance remained weak, according to data.
According to The Block on Sept. 9, Bitcoin has risen about 22% since Aug. 17. Over the same period, cryptocurrency exchange-related stocks including Bullish, Coinbase and Robinhood, as well as stablecoin-related stocks such as Circle and Figure, recorded similar gains.
By contrast, the median return for mining-related stocks including Riot, Marathon Digital Holdings and Hive Digital was only about 1.8%. Canaan was the only mining company to outperform Bitcoin’s gain.
In particular, Core Scientific and TeraWulf recorded returns 27% and 24% lower, respectively, than Bitcoin over the same period.
Hyperliquid Urges Dismissal of CME Lawsuit Over Perpetual Futures
Hyperliquid has asked a U.S. court to dismiss a lawsuit filed by CME Group against the Commodity Futures Trading Commission (CFTC).
According to The Block on Sept. 9, the Hyperliquid Policy Center (HPC) filed a brief supporting the CFTC in federal court in Washington, D.C., the previous day.
CME filed the lawsuit in June after the CFTC approved perpetual futures products offered by another exchange. CME argued that existing exchanges could be harmed whenever new products are approved.
HPC said that if CME prevails, existing companies could file lawsuits each time the CFTC approves a new product, potentially stifling innovation in the U.S. futures market.
