Bitcoin and Ethereum Surge Amid US Treasury Bond Buyback Decision

Crypto markets experienced significant movements on August 20, 2026, driven by the U.S. Treasury's decision to double long-duration bond buybacks from $2 billion to at least $4 billion per operation.

Aaron Dishner, co-founder and lead instructor at The Better Traders, Inc., attributed a liquidity response and subsequent short liquidations totaling roughly $1.4 billion in four hours and $2.5 billion over 24 hours as the primary drivers of these movements.

Bitcoin rose nearly 15% in four days, reaching the 0.618 Fibonacci level where overhead resistance overlaps. A close above this level would significantly reduce the chances of dropping below $57,800, but such a close has not yet occurred.

Ethereum experienced a 17% one-day pump attributed to a liquidation cascade, and lower-tier cryptocurrencies lagged behind Bitcoin and Ethereum as Bitcoin dominance and Ethereum dominance captured market flow.