Mark Connors, a veteran bond market investor, argues that routine U.S. Treasury buyback operations could catalyze Bitcoin's next major rally toward $180,000.

Connors points to improved liquidity from these buybacks as a key driver. When the Treasury conducts buyback operations, it removes bonds from circulation and injects cash into financial markets. This liquidity boost typically flows into risk assets, including Bitcoin.

The strategist's $180,000 target represents roughly a 125% gain from Bitcoin's current trading levels around $80,000. This projection aligns with broader institutional optimism entering 2025, though it remains well above consensus price forecasts from major Wall Street banks.

Connors' thesis rests on a macro liquidity argument. Treasury buybacks expand the money supply available for speculative positioning. Historically, periods of robust liquidity expansion have preceded Bitcoin rallies, particularly when traditional bond yields decline and real yields compress. Negative or near-zero real yields push investors toward uncorrelated assets like Bitcoin.

The timing matters. The Federal Reserve has held rates steady, and markets now debate when the next rate cuts arrive. If inflation data weakens, the Fed could signal easing sooner than expected, triggering both broader risk-asset rallies and Treasury buyback acceleration.

However, Connors' call comes with macro risks. Stubborn inflation, geopolitical tensions, or stronger-than-expected employment data could force the Fed to maintain restrictive policy longer. Additionally, regulatory headwinds remain uncertain. The incoming administration's stance on crypto remains fluid despite campaign rhetoric supporting digital assets.

Bitcoin currently trades around $80,000 after recovering from recent pullbacks. On-chain metrics show sustained demand from long-term holders and institutional players. The Nasdaq's strength also supports risk appetite.

Connors' analysis adds to growing conviction among macro-focused investors that liquidity conditions, not merely Bitcoin adoption, drive near-term price action. His $180,000 target suggests a significant bull case, but execution depends on the Fed pivoting and risk appetite remaining robust throughout Q1 2