BTC surges to a three-month peak after $240 million in short positions are liquidated, driven by U.S. Treasury bond buyback expectations.
Bitcoin climbed above $81,000 for the first time since mid-May, extending a rally fueled by liquidity hopes tied to U.S. Treasury bond buybacks. The surge intensified as $240 million in short positions were liquidated in 24 hours, compared to $88.83 million in long liquidations, forcing bearish traders to cover positions.
The move follows the Treasury’s Aug. 19 announcement to expand long-term bond buybacks, which sparked broader crypto market optimism. Prior to this, BTC had traded below $60,000 for much of the summer, with liquidations remaining muted until the recent squeeze.
The rally coincides with heightened geopolitical tensions after the U.S. Treasury imposed new sanctions on Iran, targeting sectors including digital assets. Analysts noted the sanctions may drive demand for decentralized assets as traditional markets face regulatory scrutiny.