Bitcoin Price Soars to Three-Month High Amid Treasury Move and ETF Demand

The recent surge in Bitcoin's price has reached a three-month high, driven by various market factors. One key event was the US Treasury's announcement to double the maximum size of its long-end liquidity-support buybacks from $2 billion to at least $4 billion per operation. This move is scheduled for September 9 through November 4, 2026.

Markets interpreted this decision as support for long-dated Treasury liquidity, reviving concerns about fiscal pressure, a weaker US dollar, and currency debasement. As a result, both Bitcoin and gold have risen in value. Demand through US spot Bitcoin ETFs has also strengthened, with Farside Investors' daily data showing six consecutive sessions of net inflows between August 17 and 24, totaling approximately $2.26 billion.

Short liquidations played a significant role in the price breakout, as traders who held positions open on a price decline were forced to close their positions, resulting in purchases that accelerated the upswing. However, this rapid increase may be difficult to sustain once the forced buying ends.