Bitcoin nears $70K as $1.3B short squeeze forces rally

Bitcoin jumped to an intraday high of $69,749 on Aug. 19 during late-morning U.S. trading, approaching the $70,000 mark after long-term Treasury yields fell and forced short liquidations removed about $1.3 billion of bearish positions. The token had traded between roughly $61,500 and $65,000 for weeks before the surge.

The U.S. Treasury said it would at least double the maximum size of liquidity-support buybacks for longer-dated Treasuries from $2 billion to at least $4 billion per operation, with the changes set to begin Sept. 9. The 30-year Treasury yield was near 5.33%–5.34% before the announcement and eased toward the low 5.2% range afterward.

As bitcoin pushed through $66,000, leveraged short positions were liquidated. Liquidation trackers recorded about $1.48 billion in combined short and long liquidations within a 60-minute span, with the majority tied to shorts. Market data showed roughly 114,538 traders were wiped out over the prior 24 hours.

U.S. spot bitcoin exchange-traded funds recorded a $297.6 million inflow the day before and showed further positive flows around Aug. 19, indicating spot-market buying alongside the derivatives-driven squeeze.

High leverage amplified the price move. Traders using 20-to-1 or 40-to-1 leverage can be eliminated by relatively small adverse moves. When exchanges close losing short positions, the required buy orders push prices higher and can trigger additional liquidations. The sharpest portion of the rally unfolded over roughly 15 to 60 minutes as trading volume rose.

Shortly after the intraday peak, bitcoin was trading around $68,468 at 11:50 a.m. EDT on Wednesday. Market participants will watch whether bitcoin can sustain gains in the $69,000–$70,000 area, whether prior resistance near $66,900 holds as support, and whether ETF inflows and Treasury yields remain favorable.