Recently, the U.S. Treasury conducted a $200 million Treasury bond buyback operation, which has attracted market attention as part of the buyback plan launched in mid-2024. Although officials have characterized it as routine debt management, the financial community generally interprets it as a measure to inject Liquidity into the market.

The core mechanism of this repurchase operation is to influence market interest rates by adjusting the maturity structure of government bonds while increasing the reserves of the banking system. From past experience, similar liquidity injections usually have a positive impact on various risk assets, including cryptocurrencies.

It is worth following whether this buyback operation will become a sustainable trend. If the market forms stable liquidity expectations, it may stimulate more funds to flow into emerging markets such as cryptocurrencies. However, we cannot ignore the Federal Reserve's ongoing balance sheet reduction policy, as these two opposing forces may offset each other to some extent.

For cryptocurrency investors, closely following the trends in U.S. fiscal and monetary policy is crucial. While an increase in Liquidity may drive up the prices of risk assets, market reactions are often complex and variable, requiring investors to consider multiple factors comprehensively.

Overall, this move by the U.S. Treasury has injected a shot of confidence into the market, but its long-term impact remains to be seen. In the fast-changing financial environment, maintaining vigilance and flexibility will be key for investors to cope with market changes.