Bitcoin (BTC) climbed to its highest level since the start of June after Wednesday’s Wall Street open as markets reacted to a US government liquidity move.

Bitcoin rose 6% on the day to reach $69,749, its highest price since June 2, according to data from TradingView. BTC/USD moved above $69,700 on Bitstamp as US stock markets opened higher.

The move followed an announcement from the US Treasury Department that it will at least double the size of government debt buybacks, increasing the maximum from $2 billion to a minimum of $4 billion per operation beginning on Sept. 9.

The 30-year US Treasury yield, which had reached its highest level in nearly 20 years on Tuesday, fell immediately after the announcement. It was at 5.19% at the time of writing, down 9 basis points.

“This increase in buyback operation sizes reflects Treasury’s desire to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants, as evidenced by the significant volume of high-quality offers Treasury routinely receives in longer-dated buyback operations,” the Treasury said in an official press release.

US debt buybacks effectively add the government as a buyer in the longer-term debt market. Earlier, analysts had pointed to rising corporate debt, particularly in the AI sector, as one factor behind the jump in yields, underscoring how shifts in Treasury market conditions can spill into broader risk assets.

“This is NOT a debt paydown, it is just a rearrangement of the maturity schedule of Treasuries,” Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, told CNBC.

The announcement came as US national debt approached the symbolic $40 trillion mark. On Tuesday, trading resource The Kobeissi Letter said interest payments on the debt pile had reached $1.4 trillion over the past 12 months, tripling since 2020.

“If rates remain stable, interest payments are set to rise to $1.7 trillion by November 2028,” it forecast in a post on X, citing data from Bank of America.

Bitfinex says stablecoin liquidity is limiting Bitcoin’s rebound

Despite Bitcoin’s rise, crypto exchange Bitfinex said the token’s upside may remain constrained by weaker stablecoin liquidity on exchanges. It noted that stablecoin balances had fallen by $14 billion since May.

“Until stablecoin supply turns, the rally stays unfunded,” Bitfinex told followers on X.

Stablecoins are often viewed as sidelined capital waiting to be deployed into crypto markets. Their decline can indicate that investors are not yet positioning aggressively for new entry points, even when prices move higher.

Data from CryptoQuant’s Stablecoin Supply Ratio (SSR), which measures Bitcoin’s market capitalization relative to the aggregate stablecoin market capitalization, also points to tightening liquidity conditions over the past six weeks.

A higher SSR indicates that stablecoin liquidity is leaving exchanges. Since June 30, the ratio has risen from 9.82 to 11.69. The highest SSR reading of 2026 was 12.83, recorded on Jan. 14.