Bitcoin Hits $70K as Treasury Buyback Sparks $1.23B Short Squeeze on August 19

Bitcoin surged 5.8% to $69,500 on Wednesday, wiping out $1.23 billion in short bets within an hour. The rally followed two major catalysts: the U.S. Treasury announced it would at least double its long-term bond buyback program to $4 billion per operation, and President Trump hosted crypto executives at the White House to discuss the stalled CLARITY Act, which aims to clarify which tokens are securities versus commodities.

Treasury buyback sends yields tumbling, sparking risk-on shift

The U.S. Treasury’s decision to double its long-term bond buybacks to at least $4 billion per operation came as the 30-year yield hit 5.337%, its highest level since 2007. The buyback announcement knocked that yield back to 5.192%. When government bond yields fall, investors hunt for returns elsewhere, and Bitcoin sits near the front of that line. The Crypto Fear and Greed Index moved to 46 on Wednesday, steadily approaching neutral after sitting lower last week.

Short squeeze liquidates over $1 billion in one hour

Traders betting on falling prices, known as shorts, paid dearly when Bitcoin jumped. Roughly $1.23 billion of those bets were closed out at a loss within a single hour. Across 24 hours, short liquidations reached $1.57 billion across 112,004 traders. When a short bet fails, the exchange buys the asset back at market price, which pushes the price higher and triggers more liquidations. Three large wallets on Hyperliquid lost a combined $194 million alone.

White House meeting pushes crypto regulation forward

President Trump hosted crypto executives including Coinbase CEO Brian Armstrong, Robinhood CEO Vlad Tenev, and Kraken co-CEO Arjun Sethi at the White House on Wednesday. SEC Chair Paul Atkins and CFTC Chair Mike Selig also attended. Trump called on Congress to pass a “fair version of the CLARITY Act,” which has stalled in the Senate. The Senate’s first floor test is scheduled for September 15, giving lawmakers 27 days to resolve remaining disputes over the bill.

Crypto stocks rally alongside Bitcoin

Crypto-linked equities surged on the same wave. MicroStrategy (MSTR) climbed 11.95% to $103.58, while Coinbase (COIN) rose 9.05% to $159.47. Circle (CRCL) jumped 9.44% to $78.50, and BitMine (BMNR) added 9.68% to $20.05. Each stock touched intraday highs before paring some gains: MSTR reached $106.90 (+13.07%), COIN $165.74 (+12.37%), CRCL $81.22 (+10.10%), and BMNR $20.90 (+12.79%). These stocks move on Bitcoin’s price, making them proxies for crypto sentiment.

Final Thoughts

Bitcoin’s $1.23 billion short squeeze and Treasury stimulus created a rare one-day catalyst. With the CLARITY Act vote 27 days away and Trump pushing Congress to act, crypto regulation is now a White House priority, not just a regulatory debate. Investors should watch the September 15 Senate vote for the next major catalyst.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.