XRP Surges 51% as Treasury Buybacks Fuel Crypto Rally
The U.S. Treasury’s decision to double the size of its long-dated debt buybacks was aimed at improving market liquidity and trading conditions, rather than providing monetary stimulus on the scale of Federal Reserve quantitative easing. Investors nevertheless interpreted the move as a signal that could ease funding pressures and help restrain yields, strengthening demand for risk assets including cryptocurrencies.
XRP jumped 51% over the latest week, outperforming the broader crypto market and posting its biggest weekly gain in nearly 21 months. The rally was amplified by a short squeeze as improving macro sentiment pushed prices higher and forced bearish traders to cover positions. Nearly $2 billion in short positions were liquidated across the market, adding momentum to XRP’s sharp advance.
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The history behind this eventU.S. Treasury Operations Raise Liquidity Concerns, Pressure Bitcoin and XRP
When the U.S. Treasury sells debt, the proceeds flow into its Treasury General Account at the Federal Reserve, temporarily draining cash from the banking system and weighing on risk assets such as Bitcoin. Michael Kramer, founder and CEO of Mott Capital Management, said Bitcoin was particularly sensitive to changes in liquidity, with the pressure also spilling over to XRP.
On May 28, 2026, Kramer warned that Treasury settlements from May 28 through June 5 would drain about $150 billion, including roughly $68 billion on June 2 alone. Bitcoin broke below support at $75,000 and was trading at about $73,069 at the time of the report, down 11% from a high above $82,500. XRP plunged 4%, falling below $1.30 and briefly touching $1.2931.
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