US Treasury Buyback Tweak Triggers $4B Bitcoin Short Squeeze Above $79,000

Key Facts

In a move reflecting the profound impact of government liquidity on digital assets, a technical adjustment to the U.S. Treasury's bond buyback program catalyzed a powerful rally in the cryptocurrency market. According to analyst reports, Bitcoin surged from $64,000 to over $79,000 within just four trading sessions. This sudden price spike is attributed to improved macro liquidity conditions, which propelled the world's largest cryptocurrency past key psychological levels.

The rapid upward momentum triggered a massive short squeeze, resulting in approximately $4 billion in liquidations. Market data indicates that the Treasury's technical tweak acted as a macro catalyst, forcing bearish traders to cover their positions and further accelerating the price surge. This development highlights the sensitivity of crypto assets to shifts in fiscal policy and broader market liquidity injections.

Looking ahead, investors are monitoring upcoming economic catalysts, including U.S. and Canadian inflation data and U.S. housing market figures scheduled for August 18, 2026.