Crypto markets surged Thursday, with Bitcoin (BTC) price climbing above $69,000 for the first time since June as investors responded to a shift in US Treasury policy and a wave of forced short-position liquidations.
The total crypto market capitalization jumped 7.8% in 24 hours to $2.45 trillion on August 20, 2026, according to CoinGecko data.
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Bitcoin (BTC) price rose nearly 8% to trade above $69,500, briefly approaching $70,000 before easing. Ethereum (ETH) surged 18% to above $2,250, while XRP gained more than 10% to reclaim the $1.10 level. Solana (SOL) also advanced more than 10%.
The rally came as investors responded to a US Treasury decision to expand its long-term bond buyback operations, while heavy short-position liquidations amplified the move across crypto markets.
Why did the Crypto Rally Accelerate?
The catalyst was the US Treasury’s announcement that it will expand long-term bond buybacks from roughly $2 billion to at least $4 billion per operation, starting in September 2026. The move pressured long-term bond yields lower and boosted risk appetite across markets.
The initial gains were then amplified in crypto derivatives markets by a sharp short squeeze.
About $2.99 billion in crypto positions were liquidated over 24 hours, including approximately $2.74 billion in short positions, according to CoinGlass. Bitcoin and Ether accounted for a large share of the forced closures.
When leveraged short positions are liquidated, exchanges automatically close those trades by buying the underlying asset. That forced buying can accelerate a rally, triggering additional liquidations and creating a feedback loop.
Bitcoin Price Breaks Through a Key Trading Range
Bitcoin’s move above $68,000 also broke a level that had contained the asset for weeks. Bitcoin reached around $69,800 on August 19, its highest level since early June.
Crypto-linked stocks rallied alongside digital assets. Coinbase, Strategy, and Circle Internet Group each posted double-digit percentage gains on August 19, tracking the broader risk-on move in digital assets.
What Other Factors Are Supporting Price Rally?
Regulatory developments have provided another source of optimism. On August 18, the US Securities and Exchange Commission (SEC) proposed a framework covering certain crypto-related investment contracts. The proposal includes exemptions for some offerings of up to $5 million over four years and up to $75 million during a 12-month period.
Institutional demand had also strengthened earlier in August. US spot Bitcoin ETFs attracted over $1 billion during the week ended August 19, their strongest weekly inflow since April.
Why This Matters
The size and speed of the move underscore how sensitive cryptocurrency markets remain to US monetary and fiscal policy, regulatory developments and leverage.
Sustained follow-through will depend on whether spot demand, rather than short covering alone, continues to support crypto prices.
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