The cryptocurrency market witnessed a landmark event today: bitcoin (BTC) returned to the $70,000 level for the first time since June 2. This surge, which investors had awaited for 78 days, was made possible by a unique confluence of macroeconomic factors and high-profile political statements.
Just two days ago, the asset was trading below $64,000, and in early July it was even around $62,000. However, such a sharp recovery did not go unnoticed in the derivatives market. Within one hour, short positions worth approximately $1.23 billion were liquidated. Particularly telling is the case of a major player on the Hyperliquid platform, who closed a short position on 1,800 BTC, recording a loss of roughly $117 million.
Macroeconomic backdrop and political catalyst
The first impetus for growth came from Washington. The U.S. Treasury Department announced plans to double the volume of long-term bond buybacks — operations of at least $4 billion. Yields on 30-year government bonds began to decline from their 2007 highs, which automatically increases the attractiveness of risk assets that do not generate coupon income, including bitcoin.
The second, more powerful catalyst came from the U.S. president. Donald Trump confirmed that the administration is discussing the possibility of acquiring a "significant" amount of bitcoin for government reserves. Notably, he directly linked this idea to strengthening the dollar, stating that such a move would be "very, very good for the dollar."
It is worth recalling that in March 2025, the Strategic Bitcoin Reserve was created, but it was replenished exclusively with confiscated coins. If the government decides to purchase on the open market, it would be an unprecedented step in history that would fundamentally change the demand structure.
The Federal Reserve also did not stand in the way. In the minutes of the July meeting, despite mention of "elevated inflation," no hawkish signals were heard, apart from three known dissenters. The probability of a rate hike in September fell to 34%, and the dollar began to weaken. The combination of falling yields, a "dovish" Fed stance, and a president contemplating BTC purchases creates an extremely powerful momentum.
At the time of writing, bitcoin reached $70,000 on Binance and $70,022 on Coinbase. However, let us not forget that even at current levels, the asset is trading roughly 44% below its all-time high of $126,080, set in October last year. This year, gold has outpaced bitcoin, gaining 33% against BTC's 46% decline. We are now witnessing an attempt to reverse this trend.
My comment: The market is certainly enthused, but the key question is whether words will be enough to hold the level. If statements about purchases evolve into concrete actions, we will see not just a correction, but the beginning of a new structural rally. For now, this is more of a powerful signal than a fait accompli, and traders should closely watch trading volumes as we approach $70,000.