{"id":226146,"date":"2026-09-11T21:22:59","date_gmt":"2026-09-11T21:22:59","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=226146"},"modified":"2026-09-11T21:22:59","modified_gmt":"2026-09-11T21:22:59","slug":"bitcoins-unusual-mix-bearish-inflation-print-bullish-buyback-failure","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=226146","title":{"rendered":"Bitcoin\u2019s \u2018Unusual Mix\u2019: Bearish Inflation Print, Bullish Buyback Failure"},"content":{"rendered":"

Bitcoin Magazine<\/a><\/p>\n

Bitcoin\u2019s \u2018Unusual Mix\u2019: Bearish Inflation Print, Bullish Buyback Failure<\/a><\/p>\n

<\/div>\n

Bitcoin\u2019s path higher just got harder in the short term, but the setup further out may be improving, according to a new report.\u00a0<\/p>\n

In a Friday note, European asset manager CoinShares\u2019 Head of Research, James Butterfill, said<\/a> firmer-than-expected core inflation raises the odds of tighter Fed policy and could cap bitcoin below $80,000 for now.\u00a0<\/p>\n

But the longer-term case, he argued, rests on the U.S. Treasury\u2019s bond buyback programme failing to bring down long-end yields \u2014 a failure that could ultimately feed the debasement narrative that has supported both bitcoin and gold.<\/p>\n

\u201cThe result is therefore a somewhat unusual policy mix for Bitcoin,\u201d the report read. \u201cToday\u2019s CPI data is negative at the margin, increasing the probability of tighter monetary policy and potentially limiting the immediate upside.\u00a0<\/p>\n

\u201cBut the apparent failure of the Treasury\u2019s current buying programme increases the likelihood of much more substantial intervention further ahead.\u201d<\/p>\n

It continued: \u201cIf that happens, it could become one of the more powerful medium-term catalysts for Bitcoin.\u201d<\/p>\n

Data on Friday revealed<\/a> that the consumer price index, excluding food and energy, climbed 0.3% in August from a month earlier \u2014 higher than expected.\u00a0<\/p>\n

According<\/a> to CME\u2019s FedWatch tool, traders think there is a 85% chance interest rates will be higher after the Federal Reserve meets next week. Bitcoin has typically performed well in a low interest rate environment.\u00a0<\/p>\n

But the U.S. Treasury\u2019s expanded bond buyback programme has so far failed to materially suppress long-term yields.\u00a0<\/p>\n

If yields stay stubbornly high, Butterfill said, pressure will build on Treasury Secretary Scott Bessent to escalate to a much larger, \u201cbazooka-style\u201d buying programme aimed at forcing borrowing costs down.<\/p>\n

Bitcoin in August had one of its best runs in years after Treasury Secretary Scott Bessent announced the department would double the size of its long-dated bond buybacks.\u00a0<\/p>\n

The announcement and subsequent price surge has led some to say the much talked-about debasement trade is back. The so-called debasement trade is when investors buy an asset as a way to hedge against a currency losing value.\u00a0<\/p>\n

Bitcoin and gold have both benefited as part of the trade as the dollar weakens.\u00a0<\/p>\n

This post Bitcoin\u2019s \u2018Unusual Mix\u2019: Bearish Inflation Print, Bullish Buyback Failure<\/a> first appeared on Bitcoin Magazine<\/a> and is written by Mathew Di Salvo<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin Magazine Bitcoin\u2019s \u2018Unusual Mix\u2019: Bearish Inflation Print, Bullish Buyback Failure Bitcoin\u2019s path higher just got harder in the short term, but the setup further out may be improving, according to a new report.\u00a0 In a Friday note, European asset manager CoinShares\u2019 Head of Research, James Butterfill, said firmer-than-expected core inflation raises the odds of […]<\/p>\n","protected":false},"author":0,"featured_media":226147,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-226146","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/226146"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=226146"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/226146\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/226147"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=226146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=226146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=226146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}