Summary
Bitcoin broke decisively out of its six-week trading range, topping $71,000 for the first time since June, after the U.S. Treasury announced it would at least double long-dated bond buybacks and President Trump urged Congress to pass the Clarity Act. The move triggered the largest short liquidation since at least 2021, with $3 billion of bearish bets forced to buy back into thin supply. Ether, SOL, XRP and DOGE all posted double-digit advances.
Key Points
- Bitcoin climbed above $71,000, up ~11% over 24 hours, breaking out of the $62,000-$66,900 range held since July 8
- Short liquidations totaled $3 billion over 24 hours vs $263.5 million on the long side — largest since at least 2021
- More than $1 billion cleared in a single hour; BTC accounted for $1.67B, ETH $1.14B
- Treasury to at least double long-dated buyback operations to $4 billion (effective Sept 9), pulling 30-year yield back from 5.337%
- Trump urged Congress to pass the Clarity Act, floated sizable U.S. bitcoin purchases, revealed regulators exploring a compliant route for Hyperliquid
- Ether rocketed 19% to ~$2,270 (three-month high); SOL, XRP, DOGE all double-digit gains
- Coinbase Fear and Greed index jumped to 59 ("greed") from 41 ("fear")
- Bitcoin daily trading volume up 250% at $59 billion
- Bitcoin hit $72,000; ETF inflows of $700 million — largest in months
- Open interest rose 9.11% to $131.25 billion
- Largest single position wiped out: $48.8 million bitcoin trade on Hyperliquid
- Analysts warn the squeeze was driven by forced buying rather than sustained new demand; test is whether it holds above breakout zone and challenges $76,000
- Broader context: Fed minutes showed several policymakers favored a rate increase; sticky inflation concerns remain