Bessent’s Bond Move Brings $180,000 Bitcoin Scenario into Focus

U.S. Treasury Secretary Scott Bessent’s signal regarding regular buybacks for long-term bonds has prompted strategist Mark Connors to bring his $180,000 Bitcoin target to the forefront, while $72,000 levels and Clarity Act risks stand out in the short term.

In a statement to CNBC, Bessent said the U.S. Treasury will regularly buy back long-term government bonds and that the program could exceed the previously announced $4 billion. Following the remarks, the Bitcoin price rose, approaching $73,000.

Mark Connors, Chief Investment Officer at Risk Dimensions, described the move as a significant intervention against the pressure created by long-term borrowing costs. Treasury bond buybacks could help lower yields by supporting bond prices, thereby reducing the pressure that drives capital from risky assets into government bonds.

Treasury Move Could Support Bitcoin Liquidity

Connors believes that while initial purchases are small, Treasury support could eventually reach $10 billion to $30 billion per month. The strategist also expects a loosening of the SLR regulation (Supplementary Leverage Ratio), which determines how many Treasury bonds banks can hold relative to their capital. Such a change could create space for banks to purchase more government bonds.

These expectations have also shifted Connors’ outlook on Bitcoin. Having previously thought the Bitcoin price would remain under pressure until November due to the four-year cycle, the analyst now states it might not take that long. Connors’ $180,000 target represents the initial threshold of an analyst projection ranging from $180,000 to $360,000 for the cycle extending to 2030; these levels do not constitute a definitive price commitment.

In the short term, Jim Ferraioli of Charles Schwab noted that leveraged short positions are concentrated around $72,000. If Bitcoin remains above this level, short covering could support the rally. However, Connors warned that if the Clarity Act fails to progress around September 15, Bitcoin could drop below $72,000.