The U.S. Treasury's repurchase of $2 billion in long-term bonds on October 2, 2025, has coincided with a significant rally in Bitcoin prices. The cryptocurrency surged past $120,000, driven by increased liquidity and strong ETF inflows. On-chain data from Glassnode indicates that mid-sized Bitcoin holders are accumulating, while whale selling has decreased. Analysts are divided on the implications of the bond buyback. Some view it as a bullish signal for Bitcoin, suggesting it enhances market liquidity, while others argue it does not address the underlying U.S. debt issues. Despite differing opinions, the buyback appears to have contributed to Bitcoin's ongoing "Uptober" rally.