Bitcoin Breaks Above $69K as US Treasury Policy Shift Triggers Crypto Rally
The cryptocurrency market has seen a significant surge in prices, with Bitcoin climbing above $69,000 for the first time since June. This move comes as investors responded to a shift in US Treasury policy and a wave of forced short-position liquidations.
The total crypto market capitalization jumped 7.8% in 24 hours to $2.45 trillion on August 20, 2026, according to CoinGecko data. Bitcoin's price rose nearly 8% to trade above $69,500, briefly approaching $70,000 before easing.
Ethereum (ETH) surged 18% to above $2,250, while XRP gained more than 10% to reclaim the $1.10 level. Solana (SOL) also advanced more than 10%. The rally was driven by the US Treasury's decision to expand its long-term bond buyback operations and a sharp short squeeze in crypto derivatives markets.
About $2.99 billion in crypto positions were liquidated over 24 hours, including approximately $2.74 billion in short positions, according to CoinGlass. The initial gains were then amplified by the forced buying triggered by leveraged short position liquidations, creating a feedback loop that accelerated the rally.