Bitcoin Surges 13% as US Treasury and Institutional Buying Fuel Rally

Bitcoin's price has surged to $77,580, up 13.2% in 24 hours from its previous value of $64,400.

This increase is attributed to three factors: a US Treasury decision to double long-dated bond buybacks, the return of institutional buying, and the liquidation of bearish positions.

The US Treasury's move has injected cash into the financial system, pushing down long-term yields. This benefits risk assets, making volatile ones like Bitcoin more attractive.

Institutional buying is also on the rise, with US spot Bitcoin ETFs taking in $517 million on August 19 and $606 million on August 20, while Ethereum funds added $221 million on the same day.

The liquidation of bearish positions has also contributed to the price surge, with a record $2.7 billion lost during the increase, including over $1 billion in short positions liquidated within an hour.

While the market is currently optimistic about regulatory changes, such as the CLARITY Act, these are not yet concrete and should be treated with caution.