Bitcoin (BTC) hit $69,000 on Wednesday. First time in two months. The move flushed nearly $2 billion in shorts from the book, landing hours after the US Treasury announced it would more than double its long-end bond buyback operations and the SEC floated a new framework for crypto-asset issuance.
The rally spread fast. Ether (ETH) popped 10%, back above $2,000 for the first time since May. Solana (SOL) and XRP (XRP) each gained more than 5% on the day. Short sellers took the brunt of it. CoinGlass data cited by The Block put total crypto liquidations at $1.92 billion over 24 hours, roughly $1.7 billion of that crammed into a four-hour window.
Decrypt reported a separate figure: more than $1.14 billion in shorts wiped out in a single hour. It also said bitcoin’s price briefly pushed past $70,000. The Block’s data did not confirm that level.
Two policy moves drove the action. The Treasury said Wednesday morning it is increasing liquidity-support buyback operations for longer-dated nominal coupon securities, the 10-to-20-year and 20-to-30-year sectors, by at least double. The current maximum is $2 billion per operation. That jumps to at least $4 billion. The change takes effect Sept. 9 and runs through the remainder of the refunding quarter, ending Nov. 4.
Paul Howard, senior director at crypto trading firm Wincent, said in a statement that the buyback increase is “providing additional liquidity support at the long end of the U.S. yield curve,” but cautioned it “shouldn’t be confused with the traditional QE programmes we saw five years ago.” He called the liquidity impact “still meaningful” for risk assets.
Then there was the SEC. On Tuesday afternoon the regulator proposed a rule called “Regulation Crypto Assets,” designed to open the door to offerings of crypto assets tied to investment contracts. The framework carves out two tailored exemptions: issuers could raise up to $5 million over four years, or up to $75 million annually, subject to disclosure requirements. The practical upshot is a registered path for token issuers where none existed before.
Crypto-linked equities followed. Fold Holdings (FLD) jumped nearly 20%. BitGo (BTGO) and American Bitcoin Corp (ABTC) each rose about 15%. Strategy (MSTR) and Bitmine (BMNR) closed up around 10%, according to The Block’s price data.
Several crypto executives were scheduled to meet with President Donald Trump at the White House on Wednesday afternoon, The Block reported. The substance of those talks was not disclosed.
Earlier in the week, VanEck said bitcoin’s correction may be nearing an end. Eight of twelve capitulation signals were flashing. The firm noted three previous bear phases averaged 12.7 months from peak to max drawdown. Bitcoin is now roughly in its 11th month from its early October peak.
What the data does not settle: whether bitcoin actually held above $70,000. Decrypt said it touched that level. The Block’s pricing did not confirm it. Holders, as ever, are split on whether the macro tailwind lasts past September.
