Bitcoin may benefit from dovish U.S. policy as Treasury supports long-term bonds, reviving debasement trades. Liquidations and ETF inflows also boosted its rally.

The U.S. Treasury’s bond-buyback announcement helped send Bitcoin up nearly 6% with one analyst saying a broader recovery may be afoot.

By Barbara Kollmeyer and Jules Rimmer

A US Treasury debt buyback decision lowered long-term yields, sparking a cross-asset rally across gold, equities, and Bitcoin. Coupled with a historic $1.1 billion short squeeze,…