US Treasury Doubles Bond Buybacks to $4 Billion, Sending Bitcoin to $69,749 in Its Best Day Since February

Bitcoin surged to an intraday high of $69,749 on August 19, its best single-day performance since February 2026, after the US Treasury announced it would at least double the maximum size of its debt buyback operations from $2 billion to $4 billion or more per operation, starting in September. The expanded buybacks target 10-to-20-year and 20-to-30-year Treasury securities, a move designed to reduce long-term yields. The 30-year Treasury yield fell roughly eight basis points to 5.2% and the 10-year yield also declined, improving conditions for risk assets broadly.

Bitcoin reversed sharply from an intraday low near $64,124, gaining more than $5,000 in under an hour and breaking above $66,000, $67,000, $68,000, and $69,000 in rapid succession. The move triggered a historic short squeeze: estimates of forced liquidations across crypto ranged from roughly $196 million in Bitcoin shorts alone to more than $1.1 billion across the broader crypto market within 60 minutes, with total short liquidations over 24 hours cited as high as $1.3 billion. Ethereum crossed $2,000 alongside the Bitcoin rally.

Large holders resumed buying during the session, and the move brought Bitcoin above $68,000 for the first time since June. The rally coincided with traders positioning ahead of the Federal Reserve's release of its July meeting minutes, with lower yields and a weaker dollar adding further tailwinds.