- Bitcoin climbed above $70,000 for the first time since early June and later approached $72,000.
- Short liquidations reached a record $2.74 billion, with total wipeouts near $3 billion across more than 172,000 traders.
- U.S. spot bitcoin ETFs recorded $517 million in net inflows on Aug. 19, the largest since early May; ether ETFs added $189 million.
- Key catalysts included the U.S. Treasury doubling long-term bond buybacks and President Trump urging passage of the Clarity Act at a White House crypto event.
Bitcoin briefly surpassed $70,000 on Wednesday for the first time since June 2, with the largest cryptocurrency later approaching $72,000 as gains extended into Thursday.
The move, which delivered more than 7% gains in 24 hours and over 15% since Monday, was driven by improved liquidity conditions and renewed policy optimism. U.S. Treasury Secretary Scott Bessent announced a doubling of the department’s long-term bond buyback operations, a step traders interpreted as supportive for risk assets through potentially lower yields.
At the same time, President Donald Trump hosted leading crypto executives at the White House and called on Congress to advance market-structure legislation, saying: “Now we need Congress to take the next step by passing the Clarity Act — fair version of the Clarity Act.”
The sharp price advance triggered a historic short squeeze. CoinGlass data cited by CoinDesk showed short sellers lost nearly $2.74 billion in 24 hours — the largest wave of forced bearish closures in records dating to 2021 — out of total liquidations approaching $3 billion across 172,108 traders. Bitcoin accounted for roughly $1.42 billion of the short liquidations, while ether saw about $1.13 billion.
Institutional flows reinforced the rebound. U.S. spot bitcoin ETFs posted $517.19 million in net inflows on Aug. 19, the strongest single-day total since May 4, led by BlackRock’s IBIT at $284.7 million. Spot ether ETFs simultaneously recorded $189 million in inflows.
The rally has reclaimed several key technical and on-chain levels, yet broader macro risks, including inflation readings and potential Federal Reserve policy shifts, remain relevant for further upside. Related assets also advanced, with ether rising more than 18% over the same period.
