XRP Surges 51%: US Treasury’s Move Fuels Expectations of Yield Curve Control

XRP is heading for its strongest weekly performance since November 2024, surging 51% this week as the US Treasury increased its long-term bond buybacks.

According to CoinDesk data, XRP has risen 51% since Monday, reaching $1.50. This marks the token’s best weekly performance since November 2024. While the price was just under $1 a week ago, it is now trading around $1.50.

The rally comes after XRP lagged behind in the previous recovery. During the same period, Bitcoin gained 22%, Ethereum 30%, and Solana 28%. XRP’s lead widened as short-selling investors closed out their positions.

US Treasury move boosted XRP

The US Department of the Treasury announced that it would buy back government bonds with 10-30 year maturities between September 9 and November 4. The plan, which will consist of multiple operations, will total at least $4 billion. The previous cap was $2 billion. Long-term bond yields had also reached their highest levels since 2007.

Although this step is a technical liquidity management operation by the Treasury, it created expectations of limiting interest rate hikes. The market is pricing in that this could evolve into a more aggressive monetary policy tool known as yield curve control (YCC) in the future. In YCC, a central bank sets a cap on long-term interest rates and buys as many bonds as necessary to maintain that level. However, no such policy has been announced in the US.

According to CoinGlass data, approximately $2 billion in short positions were liquidated this week. As the price rose, investors closing their bearish trades at a loss contributed to the acceleration of the movement.

Nevertheless, XRP remains well below its $3.65 peak seen in July last year. The price, which had fallen below $1, has only recovered 20% of that decline so far. Therefore, the recent jump does not yet confirm a permanent uptrend.