Bitcoin Reclaims $70,000: Treasury, Trump, and Short Squeeze Fuel Rally

Key facts

• Bitcoin reclaimed $70,000 for the first time since June, touching $70,000 on August 19 and exceeding $71,000 on August 20.
• The U.S. Treasury, led by Secretary Scott Bessent, doubled its long-term bond buybacks from $2 billion to at least $4 billion per operation.
• President Donald Trump met with crypto and tech executives at the White House on August 19, urging Congress to pass the CLARITY Act.
• The CLARITY Act would clarify whether digital assets fall under SEC or CFTC jurisdiction; it remains stalled in the Senate with a procedural vote scheduled for September 15.
• Trump mentioned discussions of a sizable U.S. government Bitcoin purchase, but no evidence indicates such a purchase has occurred.
• Over $2.7 billion in bearish crypto positions were liquidated in 24 hours, the largest short-liquidation event since at least 2021, according to CoinDesk.
• Bitcoin's breakout above $70,000 follows an inverse head-and-shoulders pattern with a neckline around $66,600, targeting near $76,000.
• Bitcoin remains about 44% below its record high of roughly $126,080 from October.
• The Federal Reserve's July meeting minutes showed some officials favored a rate hike, with inflation risks tilted to the upside.