Bitcoin Surges 7.1% to $71,880 as Trump Pushes Crypto Clarity Act on August 20

Bitcoin rose 7.1% to $71,880 on August 20, marking its largest single-day gain since February 2026. The rally followed a White House meeting where President Trump urged Congress to pass the Digital Asset Market Clarity Act and signaled support for the crypto industry. A U.S. Treasury announcement to double long-term bond buybacks also helped by lowering yields and boosting demand for higher-risk assets.

Trump’s White House crypto push drives rally

President Trump convened crypto industry leaders and regulators at the White House on Wednesday, where he called on Congress to pass the Clarity Act and praised the sector for “ensuring that the future of commercial markets is pioneered and perfected right here in the USA.” The bill, currently stalled in the Senate, aims to establish clear rules distinguishing which digital assets are securities versus commodities. Trump also expressed interest in attracting the decentralized exchange Hyperliquid to the United States and stated that America should remain the global leader in cryptocurrency and artificial intelligence.

Short-term holders lock in profits as price breaks cost basis

Bitcoin’s surge above $71,000 triggered the largest profit-taking event of 2026 for short-term holders, who transferred 44,300 BTC to exchanges on August 20. Short-term holders, defined as investors holding Bitcoin for less than 155 days, had an average cost basis of approximately $67,100. According to CryptoQuant data, once Bitcoin cleared this level, previously underwater positions became profitable, prompting mass selling to lock in gains.

Treasury bond buyback and short liquidations fuel momentum

The U.S. Treasury Secretary announced a doubling of long-term Treasury buybacks from $20 billion to $40 billion per operation, sending 20-year and 30-year bond yields significantly lower. Lower yields make Bitcoin more attractive to investors seeking higher returns. The rally also triggered a record $3.1 billion in crypto short liquidations over two days, with Bitcoin accounting for $1.65 billion of that total. Ether jumped 9% to $2,288.91, while Hyperliquid surged 25% in 24 hours.

Resistance levels and analyst targets ahead

Bitcoin remains well below its 2026 high of $94,820 set in mid-January and its all-time high of $126,198 from October 2025. Standard Chartered’s Geoffrey Kendrick noted that the Treasury’s bond buyback decision “is exactly the type of thing Bitcoin loves” and suggested investors should position for a move to $100,000 by year-end 2026. The key level to watch is whether Bitcoin can sustain prices above the $67,100 short-term holder cost basis to avoid triggering additional profit-taking.

Final Thoughts

Bitcoin’s 7.1% rally reflects alignment of macro and policy catalysts: Treasury bond buybacks lowering yields and Trump’s push for crypto-friendly legislation. With resistance at $100,000 by year-end in focus, investors should monitor whether the price holds above the $67,100 support level.

FAQs

Disclaimer:

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.