Crypto Markets Soar $280 Billion as Massive Liquidation Event Triggers Short Squeeze

The crypto market added an estimated $280 billion in value over the past 24 hours after a massive liquidation event that saw $3.5 billion in leveraged positions wiped out.

This is the seventh-largest liquidation event in crypto history, according to The Kobeissi Letter.

The sudden surge in demand was triggered by falling Treasury yields and a weaker dollar following an unexpected announcement from the US Treasury that it would double its planned long-dated bond buybacks. This move caused short positions to be automatically closed, leading to a short squeeze that pushed Bitcoin's price above $72,000.

The rally has evidence of real demand behind it: US spot Bitcoin ETFs attracted $517.2 million on August 19, their strongest daily inflow in more than three months.