Bitcoin rallied above $70,000 for the first time since June, reaching $72,207 on August 20 after gaining roughly 15% since Monday, driven by a U.S. Treasury announcement and White House signals on crypto policy.
The U.S. Treasury doubled its buyback operations for 10- to 30-year securities to $4 billion from $2 billion, effective September 9. The move came as the 30-year Treasury yield hit 5.34%, its highest level since 2007. President Donald Trump also signaled openness to expanding U.S. government crypto holdings, telling reporters, “Well, it’s been talked about” when asked about the prospect.
The price movement represented a 5.8-standard-deviation daily move relative to Bitcoin’s 30-day volatility, the largest upside shock since October 2023, according to Glassnode data. Bitcoin cleared its 200-day moving average near $69,000 and broke through the $67,000 trading range that had held the asset for much of the summer.
Forced Short Covering Amplifies Rally
The surge triggered $3.1 billion in bearish crypto position liquidations over 24 hours, according to CoinGlass. Bitcoin short liquidations alone totaled $1.8 billion, while Ethereum traders lost $1.2 billion. The largest single liquidation was a $48.8 million BTC position on Hyperliquid. Long positions also faced pressure, with $277 million in liquidations.
Short-term Bitcoin holders capitalized on the rally. Glassnode reported 44,300 BTC sent to exchanges by this cohort, which holds an average cost basis of $67,100, suggesting profitable exits near current levels.
Crypto Legislation Moves Forward
The price action coincided with renewed momentum behind the CLARITY Act, which establishes which digital assets fall under securities or commodities rules and divides oversight among federal regulators. A procedural Senate vote is scheduled for September 15, requiring 60 votes to advance. The bill stalled before the August recess.
Brian Armstrong, CEO and co-founder of Coinbase, said in a statement: “Today’s message from POTUS was clear: This Administration is committed to passing the Clarity Act, answering voters’ call for consistent rules for crypto. Regulators are aligned, Congress has set a date, and the entire industry is ready to get this across the finish line. 67M Americans own crypto, and they want this legislation. I’m confident the Senate will listen.”
Trump’s 2025 executive order created a Strategic Bitcoin Reserve using government-held Bitcoin and directed officials to explore budget-neutral ways to acquire more. The Crypto Fear and Greed Index climbed to its highest level since October 2025, when Bitcoin reached its latest cycle peak.
