Bitcoin Surges Above $80,000 as Treasury Intervention Removes Shorting Premise
Bitcoin has surged to its highest level since May, trading above $80,000 for the first time in months. The cryptocurrency's price has increased by over 2% in the past 24 hours, with a market capitalization of $1.59 trillion.
The recent rally is attributed to a Treasury Department announcement on August 19, which stated that it would at least double its government debt repurchase operations to a minimum of $4 billion per operation. This move removed the premise of shorting Bitcoin against a rising real-yield backdrop, triggering over $3 billion in short liquidations.
The intraday structure has been two-sided, with prices topping $80,000 overnight before giving back gains to $79,475. However, it has since reclaimed $80,254.97 and is currently holding above the $80,000 line for the first time since May.
The 50-week moving average sits at $81,081, which is a critical level that Bitcoin needs to break through in order to continue its upward momentum. The previous two major recoveries above this level occurred in May 2020 and March 2023, both of which were followed by sustained bull runs.