Bitcoin (BTC) has returned to the $70,000 level for the first time since June 2. This breakout resulted from a confluence of factors: signals from the White House, the Fed's restrained stance, and a sharp shift in sentiment in the derivatives market, where bears suffered significant losses.
The minutes of the Federal Reserve's July meeting contained no surprises — the regulator maintained a neutral tone, which, combined with Donald Trump's statements about a possible bitcoin purchase, gave the market additional momentum. The cryptocurrency rose more than 9% in two days, climbing from lows of around $62,000 in early July.
Rapid rise and liquidations
At one point, BTC tested the $70,000 mark on Binance and $70,022 on Coinbase. The sharp jump triggered a wave of short position liquidations: in just one hour, traders lost approximately $1.23 billion. The situation on Hyperliquid was particularly telling, where a major participant closed a short of 1,800 BTC, recording a loss of about $117 million.
This is a classic example of a "short squeeze," where forced position closures amplify the upward movement. However, the current rise is not just a technical bounce but a consequence of fundamental changes in the macroeconomic picture.
Macroeconomic backdrop and government actions
The first push came from Washington: the U.S. Treasury announced an increase in the volume of long-term bond buybacks — at least $4 billion per operation. Against this backdrop, the yield on 30-year government bonds fell from 2007 highs, making yield-free assets, including bitcoin, more attractive to investors.
The second, equally important signal came from the president. When asked about the administration potentially accumulating a "significant" amount of bitcoin, Trump did not deny such a possibility. He directly linked the idea to strengthening the dollar: "It's being discussed. It has turned out to be very, very good for the dollar. If there are concrete proposals, I will definitely consider them."
It is important to note that a Strategic Bitcoin Reserve was created in March 2025, but it is funded exclusively with confiscated coins. A purchase on the open market would be the first such precedent in history, fundamentally changing the perception of BTC as an institutional asset.
Meanwhile, the Fed is not creating obstacles: in the July minutes, inflation was described as "elevated," but no hawkish signals were sounded, aside from the three known opponents. The probability of a rate hike in September fell to 34%, the dollar weakened, which further supports risk assets.
This combination — falling yields, a calm regulator, and a president considering a bitcoin purchase — is extremely strong. However, it should not be forgotten that even at $70,000, BTC is trading roughly 44% below its all-time high of $126,080 set in October last year. This year, gold has outpaced bitcoin (+33% versus -46% for BTC), but now we are seeing a trend reversal.
My view: Trump's words are not just a political gesture but a signal of a possible paradigm shift in government participation in the crypto market. If the purchase actually happens, it will become a powerful bullish catalyst. For now, holding the $70,000 level by tomorrow morning will show how much real strength these statements have amid ongoing macroeconomic uncertainty.