Bitcoin Price Hits $70,000 as Treasury and Trump Fuel Rally

Bitcoin's price surged to $70,000 on August 20, marking its highest point since February. The cryptocurrency's price jumped over 8% in a single day, its largest gain since March.

The US Department of the Treasury's announcement to increase government bond buybacks by more than doubling the scale of purchases from $2 billion to at least $4 billion is a key factor driving the price surge. This move injected liquidity into the market and weighed on the US Dollar Index, benefiting risk assets like Bitcoin.

US President Donald Trump's meeting with crypto executives, including Coinbase, Kraken, and Blockchain.com, also boosted market optimism about future regulatory policy developments. As a result, over $500 million flowed into US spot Bitcoin ETFs, triggering massive forced liquidations in the derivatives market.