Bitcoin Jumps 11 Percent, Tops $70,000

Bitcoin broke above $70,000 on Thursday, August 20, for the first time in more than two months, jumping 11.4 percent on the day to about $71,920, according to crypto.news. The day’s trading range ran from $64,323 to $71,747, on volume of around $60.46 billion, marking the coin’s highest price level since June 1.

Sources differ on the exact timing and size of the jump. Blockonomi reports that bitcoin had already crossed $70,000 a day earlier, on Wednesday, August 19, on Coinbase, before pulling back to around $69,581, a gain of more than 7 percent that day. Crypto.news, by contrast, measures the 11.4 percent jump against Thursday’s close, with the price closer to $72,000. The gap comes down to each outlet clocking the same rising wave at a different moment, not a dispute over whether the move happened.

Part of the acceleration came from forced position closures. Once bitcoin cleared $69,000, more than $1 billion in short positions were liquidated within a single hour, and liquidations across the broader crypto market topped $3 billion over 24 hours. A trader betting on a price drop who lacks enough collateral gets forced out of the position, and that closure itself amounts to a market buy in a market that is already rising, pushing the price up further.

Fresh capital arrived alongside the liquidations. US spot bitcoin ETFs took in $517 million in net inflows on August 19, the most since May, and more than $1 billion flowed into those funds over the three days from Monday to Wednesday.

Why the US Treasury Got Involved in Bitcoin’s Price

US Treasury Secretary Scott Bessent announced that the Treasury will double its purchases of long term government bonds, from $2 billion to at least $4 billion per operation, starting September 9. The bond market reacted fast: the yield on 30 year Treasury bonds fell nine basis points to 5.19 percent, and the dollar weakened. A lower yield on government debt typically makes stocks, gold and cryptocurrencies relatively more attractive next to Treasuries, which is part of why bitcoin rallied the same day.

Regulation added another push. Donald Trump, speaking at a crypto summit at the White House, called on the Senate to pass the Digital Asset Market Clarity Act, with a procedural vote scheduled for September 15. The reaction was not limited to bitcoin: Ether rose 5.3 percent, Solana gained 5 percent, XRP added 5.5 percent, and Hyperliquid jumped as much as 23 percent after Trump signaled the administration is looking at ways to let the offshore exchange operate in the United States.

What Is Limiting Bitcoin’s Further Rise

Analysts warn the rally lacks the fuel to keep this pace. Stablecoin reserves on exchanges have dropped $14 billion since May, and that is exactly the money that would otherwise be available to buy bitcoin. Crypto exchange Bitfinex put it in one line: “Until stablecoin supply turns around, the rally remains out of fuel.”

A comparison with the previous peak shows how far bitcoin still has to climb. The coin traded above $126,000 in October, before a long slide dragged the price well under $70,000. The current level is therefore a recovery, not a new record. Analyst Ted Pilouz has flagged $74,000 as the key resistance for further gains, with $70,000 as a potential new support level if the price holds there in the coming days.

Today’s coverage from our newsroom has tracked moves in the gas and oil markets, but this is the first time we have written about the crypto market, making this our first report on bitcoin’s break above $70,000.

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Source: srpske.rs