After struggling, Bitcoin (BTC-USD) staged an unexpected rebound. BTC gained around 5.6% on Wednesday, closing at $69,339.74, a level not seen in over two months.
The negativity surrounding BTC is still too high. That suggests Bitcoin may go higher.
After the 30-year Treasury bond yield topped 5.33% on Tuesday, the U.S. Treasury Department acted. It announced that it would buy back longer-duration debt. The yield rose by a significant 80 basis points. Markets priced in the U.S. spending heavily on the military, along with imposing tariffs on trade partners in April.
The TLT ETF closed at $83.02, up by 53 basis points in the last five days.
The debt buyback comes amid the U.S. recording a total national debt of $40.05 trillion. Despite the U.S. borrowing more, exacerbating inflation, the government shows no signs of slowing down. Military spending will boost stocks like Lockheed Martin (LMT), RTX (RTX), and Northrop Grumman (NOC).
In the chip sector, SK Hynix said it would buy back nearly $29 billion worth of its shares. While that would boost shareholder returns, the 24 million-share buyback between August 20 and November 19 did not help. SKHY closed up by just 0.35% on Wednesday. Micron (MU) closed almost flat, while SanDisk (SNDK) closed at $1,568.87 (-3.5%).
