20.08.2026 14:02
The US Treasury's bond buyback decision and President Donald Trump's remarks opening the door to government Bitcoin (BTC) purchases landed on the same day. These two developments pushed Bitcoin back to the $70,000 mark after 78 days.
Bitcoin was around $62,000 in early July. Two days ago, it had dropped below $64,000. The leading cryptocurrency surpassed $70,000 yesterday, reclaiming the level it left on June 2, and continued its rise throughout the night. At the time of writing, the asset was trading at $71,727, up 11%, and reached as high as $72,011 during the day. This level remains about 43% below the record high of $126,080 broken in October.
Still, this move broke the usual pattern of this year. Gold was far ahead of Bitcoin throughout 2026, gaining 33% while Bitcoin lost 46%. The rally of the last two days provided the first concrete signal that this gap could close.
SHORT POSITIONS WIPED OUT BY $1.23 BILLION IN ONE HOUR
The surge hit those expecting a decline hard. In the cryptocurrency market, short positions lost $1.23 billion in a single hour. A large investor on the Hyperliquid platform was forced to liquidate an entire short position of 1,800 Bitcoin, worth about $117 million.
Washington lit the first fuse. The U.S. Treasury Department announced it would increase the amount of buyback operations for long-term bonds to at least $4 billion per operation. Following the decision, the 30-year bond yield fell from its highest level since 2007, 5.337%. Lower long-term borrowing costs make non-yielding assets relatively more attractive.
FED MINUTES DID NOT APPLY THE EXPECTED PRESSURE
The second fuse came from the White House. Asked whether the government might buy a significant amount of Bitcoin, Trump did not rule out the possibility and directly linked the issue to the dollar. The President stated that the matter is being discussed and that the asset is very good for the dollar. Trump said he would definitely listen if someone came to him with such a recommendation.
These words fell on prepared ground. Trump had established a strategic Bitcoin reserve in March 2025, but the reserve was created with seized assets rather than purchases from the market. A direct purchase would be a first for the U.S.
The Fed minutes released the same day also did not create the expected pressure. The minutes noted that inflation remains high, but aside from the three known dissenting members, no inclination toward tightening was seen. The probability of a rate hike in September fell to 34%, and the dollar lost value. Falling yields, a quiet Fed, and a president keeping the possibility of purchases on the table came together. Whether Bitcoin can stay above $70,000 will show the real weight of these words.