Bitcoin recovered above the $70,000 mark for the first time since June 2, breaking a prolonged sideways movement that lasted 78 days. The key catalyst was statements by US President Donald Trump about possible large-scale purchases of cryptocurrency for state reserves.
At one point, the price of the leading cryptocurrency reached $70,022 on Coinbase, while trades around $70,000 were recorded on Binance. Notably, just two days ago the asset was trading below $64,000, and in early July it even dipped to $62,000. This dynamic points to a rapid shift in sentiment and a powerful influx of buying liquidity.
The sharp momentum triggered a cascade of short position liquidations: within an hour, total losses for short sellers exceeded $1.23 billion. Particularly striking was the case on Hyperliquid, where one major player lost their entire short position of 1,800 BTC — about $117 million. This is a classic example of a squeeze scenario, where forced position closures only amplify the upward movement.
Macroeconomic context and the Fed's stance
It is important to understand that the rise was not random. The day before, the US Treasury announced an increase in the volume of long-term bond buybacks — at least $4 billion per operation. This led to a decline in 30-year bond yields from 2007 highs (5.337%), which automatically increases the attractiveness of risk assets, including cryptocurrencies.
The minutes of the Federal Reserve's July meeting contained no new hawkish signals. The regulator noted persistently high inflation but proposed no additional measures beyond already known disagreements. The probability of a rate hike in September fell to 34%, and the dollar continued to weaken. This combination — declining yields, Fed passivity, and the president's willingness to discuss purchases — creates an extremely favorable environment for digital assets.
Significantly, Trump not only did not rule out the possibility of a large Bitcoin purchase but also directly linked this step to strengthening the dollar. In March 2025, he already created a strategic reserve, but only confiscated coins were added to it. An open purchase of this scale would be an unprecedented step that would fundamentally change the demand structure.
However, it is worth staying sober: even at the $70,000 level, Bitcoin remains about 44% below its all-time high of $126,080 recorded last October. Over this period, gold has risen by 33%, while BTC has lost 46%. Whether the current momentum can reverse this trend will become clear after the overnight session.
My assessment: Trump's statements are not just rhetoric but a signal of a real shift in the administration's approach to cryptocurrencies. If concrete actions follow the words, we could see not just a bounce but the start of a new structural rally. However, without confirmation at the $72,000–$74,000 level, it is premature to talk about a reversal.