Bitcoin Surges Past $75,500 as Treasury Buybacks Fuel Rally
Bitcoin surged past $75,500 in a sharp rally that has left market analysts divided over whether it marks a genuine breakout or a powerful short squeeze.
The price climb began on August 19 when the U.S. Treasury announced plans to at least double its long-term bond buybacks, which initially pushed long-term Treasury yields lower and lifted risk assets such as Bitcoin.
According to CoinMarketCap data, Bitcoin broke through $75,500, marking another major step higher after earlier moves above $70,000 and $72,000. Over $3 billion in crypto shorts were liquidated during the rally, with $2.7 billion of that occurring initially and a further $788.64 million over the following 24 hours.
Bitcoin's advance also coincided with fresh inflows into U.S. spot Bitcoin ETFs, with Farside Investors data showing $517.2 million in net inflows on August 19 and BlackRock's IBIT leading the gains. However, the rally has raised concerns over profit-taking pressure as holders who were previously underwater now have more room to sell at breakeven or take profits.
Bitcoin needs continued demand to absorb this supply, with a sustained hold above $70,000 strengthening the breakout structure and a move back below it weakening the bullish setup. The next major technical target is near $77,489, based on the 78.6% Fibonacci retracement of the decline from $82,850 to $57,800.