Bitcoin Price Nears $70K as Treasury Move Triggers Short Squeeze

Bitcoin price surged above $69,000 on Aug. 19 as short liquidations accelerated and Treasury yields retreated. The move took BTC to its highest level in nearly three months.

CoinMarketCap data showed Bitcoin reaching an intraday high near $69,366 after trading around $64,111 earlier. The cryptocurrency later pulled back toward the $68,000 region.

The rally coincided with a major U.S. Treasury announcement and White House discussions on crypto regulation. However, neither event alone establishes the cause of Bitcoin’s move.

Crypto TV Host Links Bitcoin Price Movement to US Treasury Actions

Although there is no clear sign of what caused the surge in Bitcoin price, traders are already speculating on multiple reasons. CNBC Crypto Trader host Ran Neuner believes it is due to the US Treasury’s decision on bond buyback.

The US Treasury announced today that it will double the buyback of 10-30-year bonds, with at least $4 billion per buyback. The move follows bond sell-offs, causing the 30-year Treasury yield to reach its highest level since 2007 and raising market concerns.

Neuner believes the increased buyback is a sign that the money printer is back on as the US is issuing debt and printing money to buy it back. He added that the significance of this move is what pushed BTC.

“Bitcoin has been coiled for 81 days in the same range. These coils land up in big moves. The bigger the coil, and this one was big, the bigger the move,” he said.

However, not everyone agreed with this position, noting that gold and silver did not see similar movement.  CryptoQuant data show that growth in spot and perpetuals demand over 30 days has climbed back above zero for the first time in months.

For some, the surge is tied to the planned White House meeting on crypto regulations. President Trump is meeting with executives of crypto companies, including Ripple, Coinbase, and prediction market platform Kalshi. CFTC chair Mike Selig and SEC chair Paul Atkins are also expected at the meeting.

Bitcoin Gains Trigger Almost $2 Billion in Liquidations

Meanwhile, the rise in Bitcoin’s value led to a massive liquidation, with over $1.9 billion in positions liquidated, according to Coinglass. The wipeout affected more than 130,000 traders, with short traders taking most of the hit.

$1.77 billion in short positions were wiped out, with Bitcoin alone accounting for $1.1 billion of these positions. This reflects how the majority of the market did not expect an upward price movement at this point. Only $37 milion long positions were liquidated today.

Interestingly, other crypto assets also experienced liquidations as Bitcoin gains lifted the rest of the market.

ETH crossed $2,000 again after an over 8% rise, wiping out $525 million worth of ETH positions. Bearish traders accounted for $475 million.

Bitcoin Price Faces $70,000 Test

The immediate technical test now sits around $70,000. Bitcoin approached that level after spending roughly 81 days inside a wider consolidation range, according to Neuner’s analysis.

A sustained move above $70,000 would place BTC above a psychological resistance area that has repeatedly influenced recent trading.

Failure to hold above the high-$60,000 region would weaken the breakout attempt.

The quality of the move also matters. Continued spot demand would provide stronger confirmation than another rise driven mainly by leveraged futures.

Treasury yields remain another variable. The Aug. 19 buyback announcement pushed long-term yields lower, but renewed bond-market selling could reverse that effect.

For now, Bitcoin price has broken toward the top of its recent range while a large short squeeze amplified the move. Holding those gains will depend on spot demand after forced derivatives buying subsides.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets can experience sharp price movements.