- Bitcoin gains as Treasury buybacks ease yields and trigger fresh BTC short liquidations.
- Altcoins rally broadly as HYPE gains support from fresh US regulatory policy optimism.
- Fed minutes keep rate risks in focus while stronger ETF inflows support crypto demand.
Bitcoin price briefly hit $70,000 on Wednesday as larger US Treasury bond buybacks eased pressure in the government debt market. The rally also triggered heavy short liquidations and lifted crypto prices, with Ethereum and several major altcoins posting sharp gains.
BTC rose more than 8% from the previous day and reached its strongest level since mid-June. The breakout followed about 81 days of range-bound trading, which had allowed leveraged positions to build across the derivatives market.
<embed> https://x.com/BullTheoryio/status/2090195135996817821 </embed>
According to CoinGlass, around $2.74 billion in short positions were liquidated within 24 hours. Total crypto liquidations reached about $2.98 billion during the same period.
US Treasury Bond Buybacks Ease Long-Term Yield Pressure
The broader market shift began after the US Treasury Department announced larger liquidity-support purchases of longer-dated government securities. The maximum size of each operation will rise from $2 billion to at least $4 billion.
The changes are scheduled to begin on September 9 and continue through November 4. The program involves buying older Treasury securities to support trading conditions and improve market liquidity.
The announcement came after stress increased in longer-dated bonds. The 30-year Treasury yield reached 5.34% on Tuesday, its highest level since 2007.
Persistent inflation concerns, heavy government borrowing, and worries about the US fiscal outlook had pushed long-term yields higher. That pressure raised concerns about financial conditions across risk markets.
The reaction to the Treasury announcement was immediate. The 30-year yield moved toward 5.20% and later eased to about 5.187%, while the 10-year yield also declined.
Stocks, gold, and cryptocurrencies advanced as yields fell, while the US dollar weakened. Lower bond yields can make riskier and non-yielding assets relatively more attractive to investors.
The Treasury announcement lowered bond yields, while derivatives activity accelerated Bitcoin’s rise. Leveraged short positions were forced to close as BTC moved higher.
Altcoins Rally as Crypto Prices Strengthen
The advance quickly spread beyond Bitcoin. Ethereum surged as much as 21% intraday to around $2,333 before giving back some gains.
Solana, BNB, XRP, Dogecoin, and Hyperliquid also recorded gains. The broad move showed stronger demand across major altcoins as traders moved further into the crypto market.
Hyperliquid’s HYPE token gained more than 20% on Wednesday. Its move received an additional boost from comments about a possible regulatory pathway in the United States.
President Donald Trump said Commodity Futures Trading Commission Chairman Michael Selig was working to establish a legal route for Hyperliquid to operate in the country. He made the remarks during a White House meeting with crypto and technology executives.
However, Trump’s comments did not amount to regulatory approval, but they indicated that a compliant US pathway for Hyperliquid is being explored.
White House Meeting Brings Crypto Regulation Back Into Focus
The White House talks also put US crypto policy back in focus. Trump urged Congress to advance what he called a fair version of the Digital Asset Market Clarity Act.
Representatives from Coinbase, Gemini, Ripple, and Chainlink Labs attended the gathering. Their presence showed continued engagement between the administration and major crypto companies.
Traditional finance firms also took part. Nasdaq, the New York Stock Exchange, CME Group, and DTCC were represented at the event.
Their involvement reflected broader institutional interest in blockchain-based markets and settlement systems. It also showed that the policy discussion extended beyond crypto-native firms.
The regulatory developments added another positive factor during the session. However, they came alongside the stronger macro backdrop and large derivatives liquidations rather than acting as the sole cause of the rally.
ETF Inflows Show Demand Ahead of the Move
Institutional flows had already improved before Wednesday’s breakout. Spot Bitcoin ETFs recorded $189.30 million in net inflows on August 18, according to SoSoValue.
Source: SoSo Value
Spot Ethereum ETFs attracted $71.468 million during the same period. BlackRock’s ETHA accounted for about $64.68 million of those inflows.
Those inflows added support to spot markets but did not explain the entire move. The stronger reaction arrived only after Treasury yields fell and leveraged shorts began closing.
Fed Minutes Keep Interest-Rate Risks in View
The Federal Reserve’s latest meeting minutes offered a more cautious signal for risk assets. According to a report, most officials supported keeping interest rates unchanged at the July meeting.
Several policymakers favored a rate increase. Many also believed tighter policy could become necessary if inflation failed to decline.
Most officials expected inflation to ease through the end of the year as the effects of tariffs and earlier energy-price increases faded. Even so, they continued to view inflation risks as tilted to the upside.
That keeps monetary policy in focus after Bitcoin’s breakout. Traders are now watching Treasury yields, rate expectations, and whether ETF demand remains firm. A renewed rise in yields or tighter Fed expectations could test the strength of the latest crypto rally.
Related: Grayscale Advances Zcash ETF as DCG Weighs $110 Million Token Purchase
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