Bitcoin has extended gains after the U.S. Treasury announced an expansion of long-dated bond buybacks, breaking above its 200-day moving average for the first time since November 2025.

Cointelegraph reported on Aug. 20 that the recent rebound helped Bitcoin regain a key technical indicator used to gauge long-term trends after about 9 months.

Cryptocurrency analysis platform Barchart noted that Bitcoin broke above its 200-day moving average for the first time since November 2025. The move comes about a month after Bitcoin hit an all-time high above $126,000 before turning to a longer-term decline, and is interpreted as a sign that months of weakness are easing.

The 200-day moving average is a widely used technical indicator of long-term market trends. Prices above the line are generally seen as a signal that upward momentum is strengthening. If Bitcoin holds in that range, it could also bolster views that the medium- to long-term downtrend has weakened.

The immediate catalyst for the rebound is cited as the U.S. Treasury's expansion of liquidity supply. The Treasury said on Aug. 19 it would roughly double the size of its long-dated bond buybacks. From Sept. 9, it plans to increase purchases per operation from $2 billion to at least $4 billion to improve liquidity in the long-dated Treasury market.

Bitcoin has risen more than 13% since the Treasury announcement. Long-dated Treasury yields fell immediately after the announcement, reviving risk appetite across broader financial markets and increasing expectations of fund inflows into the cryptocurrency market.

Investors are watching whether the move will create a favorable environment for risk assets broadly. Geoff Kendrick (제프 켄드릭), head of digital assets research at Standard Chartered, forecast that the Treasury's action could support Bitcoin's uptrend and drive a move toward $100,000 by year-end.

Market attention is focused less on the short-term surge than on whether Bitcoin can hold above the 200-day moving average. If it maintains that level, it could lend support to the view that the rebound is an early signal of a trend reversal rather than a temporary pullback.

Inflow is also supporting the uptrend. Spot bitcoin exchange-traded funds saw net inflows of $517 million in a day, the largest since early May. With prices and fund flows recovering together, changes in the liquidity environment are cited as a key variable that will shape Bitcoin's medium- to long-term direction.