Bitcoin Surges Past $79,000 Amid Treasury Announcement Frenzy

Bitcoin has approached $80,000 after a short squeeze led to a market rally. The U.S. Treasury's announcement on August 19 to double long-term government bond buybacks spurred a crypto rally due to liquidity hopes.

The short sellers were forced to liquidate their positions at a loss, which in turn led to the market rally. Bitcoin was trading around $65,000 before the announcement and approached $80,000 by August 24.

U.S.-listed spot Bitcoin ETFs drew $1.92 billion in inflows from August 17-21, their strongest week in nearly 10 months. This comes after a surge in government liquidity interventions, which Geoff Kendrick, a Standard Chartered analyst, said is 'exactly the type of thing Bitcoin loves.'

Kendrick believes that Bitcoin may retest its all-time high of $126,080 by the end of the year, with the rebound potentially hastening after October 6.