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Points of Focus
- Bitcoin jumped about 8% to $69,500 as $1 billion+ in BTC shorts were liquidated within an hour.
- The 30-year Treasury yield fell from 5.34% after the Treasury doubled planned long-bond buybacks.
- Trump’s CLARITY Act push added another catalyst, making $70,000 the next test once forced buying fades.
Bitcoin (BTC) jumped to around $69,500 on Thursday after its strongest daily move in months as falling Treasury yields, US President Donald Trump’s renewed push for the CLARITY Act, and a wave of short liquidations converged around the rally. The move pushed BTC back toward $70,000 after weeks of trading largely between $60,000 and $65,000.
Treasury buybacks ease yields as Bitcoin price jumps
The first major shift came from the US bond market. The Treasury said it will raise liquidity-support buybacks for 10- to 30-year securities from a $2-billion maximum to at least $4 billion per operation, effective Sept. 9. The 30-year yield later fell to 5.184% from a 19-year high of 5.337%, while the U.S. Dollar Index (DXY) slipped to around 98.85, near its lowest level since mid-May.
Falling long-term yields came with a weaker dollar and a broader rebound in risk assets. Stocks, bonds, and gold also rose after the Treasury announcement.
The program remains small relative to the $32.2-trillion Treasury market and is designed to improve market liquidity rather than replicate Federal Reserve quantitative easing. BCA Research chief US bond strategist Ryan Swift said its effect on long-term yields may prove temporary.
Trump’s CLARITY Act push adds a second BTC catalyst
Trump then urged Congress to pass a “fair version” of the CLARITY Act at a White House crypto event. The bill would define when digital assets fall under securities or commodities rules and divide oversight between federal regulators. The House passed the bill 294-134 in July 2025, while a Senate procedural vote is scheduled for Sept. 15 after months of delays.
🚨 HERE’S WHAT ACTUALLY CAUSED BITCOIN TO EXPLODE TO $69,700.
Everyone is looking at the Bitcoin candle.
But the move started in a completely different market:
U.S. Treasury bonds.
The Treasury just DOUBLED the size of its long-term bond buyback program.
→ Old maximum: $2… pic.twitter.com/QbqmNbR53L
— 🇺🇸 Ronald Carter (@USronaldcarter) August 19, 2026
The White House event coincided with a rally in crypto-linked stocks, with Coinbase gaining 10% and Strategy about 13% during Wednesday’s session.
Bitcoin short squeeze shifts focus to $70,000 demand
Leverage amplified the move. MarketWatch reported more than $1 billion in short liquidations within 60 minutes as BTC crossed $69,000, while CoinGlass data showed a broader liquidation cascade across crypto derivatives.
The squeeze explains part of the rally’s speed, but spot demand had improved before BTC broke higher. Farside data shows US spot Bitcoin exchange-traded funds (ETFs) took in $297.5 million on Aug. 17 and another $189.3 million on Aug. 18, bringing the two-day total to $486.8 million.
With more than $1 billion in shorts already cleared, $70,000 now offers a cleaner test of spot demand once forced covering fades. The Treasury’s expanded buyback operations begin Sept. 9 and run through Nov. 4.
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