XRP Army Is Bullish On Recent U.S. Treasury Action

The crypto community, particularly XRP holders, is buzzing after a recent move by the U.S. Treasury Department to repurchase $2 billion in government debt. As noted by prominent crypto analyst STEPH IS CRYPTO on X, this development is being widely viewed as a bullish signal for risk-on assets, including XRP.

Treasury Buyback Sends Market Signals

On July 30, 2025, the U.S. Treasury announced an expansion of its quarterly debt buyback program, raising the cap from $30 billion to $38 billion. The plan involves repurchasing older, long-dated Treasurys, specifically those maturing in 10 to 30 years. These buybacks, now scheduled to occur twice as frequently, aim to enhance market liquidity and stabilize long-term yields.

To fund this effort, the Treasury will issue short-term bills. While overall auction volumes remain steady, this tactical adjustment reflects the government’s attempt to manage its debt profile more actively. Market response was mixed, yields ticked slightly higher, indicating investor caution over the broader implications of this move.

XRP Community Reacts With Optimism

According to Steph, the XRP Army sees this buyback initiative as a clear positive. The reasoning is rooted in macroeconomics: government intervention that lowers long-term interest rates tends to increase the appeal of speculative assets such as cryptocurrencies. Lower yields reduce the opportunity cost of holding crypto, potentially driving more capital into digital assets.

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This sentiment has gained traction across social platforms. Enthusiasts believe such moves signal a softening fiscal stance, which could provide further tailwinds for digital assets, especially those like XRP that are positioned for use in institutional finance and cross-border payments.

A Favorable Macro Climate for Crypto

The Treasury’s action comes amid a broader shift in the U.S. government’s approach to crypto. Earlier this year, the administration confirmed the establishment of a national crypto reserve, holding over $21 billion in seized digital assets. Additionally, Trump Media & Technology Group disclosed that it now holds $2 billion worth of Bitcoin as part of its treasury strategy.

These developments, alongside pro-crypto legislation like the GENIUS Act for stablecoins, have further strengthened market confidence. For many in the XRP community, this marks a new phase in U.S. economic policy, one that increasingly accommodates blockchain-based assets.

Caution Amid the Hype

Despite the enthusiasm, some analysts urge restraint. A $38 billion buyback is small compared to the U.S. government’s massive debt load, which exceeds $15 trillion in intermediate-term Treasuries alone. Moreover, funding buybacks with short-term debt introduces rollover risk, and the broader impact on yields may be limited.

While bullish signals are emerging, they are just one piece of a complex macro puzzle. For XRP holders, the Treasury’s move adds fuel to a growing narrative, but long-term gains will ultimately depend on broader adoption and regulatory clarity.

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