Over the past 24 hours, the leading cryptocurrency has demonstrated an impressive surge of 7.9%, closely approaching the psychologically important level of $70,000. This is the highest level in the last 11 weeks. On the morning of August 20, BTC is trading around $69,740, and the market is holding its breath in anticipation of a breakout.
The key driver of this movement has been an unprecedented wave of forced short position closures. According to aggregator data, nearly $3 billion in crypto positions were liquidated within a day, of which about $2.7 billion were shorts. For Bitcoin, the volume of liquidated shorts reached $1.42 billion, with over $1 billion closed in just one hour. Ethereum is not lagging behind: $1.13 billion in liquidations, while Solana saw $104.7 million. The largest single position that failed to withstand the pressure was a Bitcoin short on Hyperliquid worth approximately $48.8 million.
Institutional Demand and Macroeconomic Backdrop
This momentum is reinforced by a powerful inflow into U.S. spot Bitcoin ETFs: on August 19, they attracted $517 million in net capital—a record since early May. Ethereum ETFs also posted their best result since October 2025, gathering $189 million. It is evident that institutional players perceive current levels as an attractive entry point.
The macroeconomic picture added fuel to the fire. The U.S. Treasury announced an increase in the volume of long-term government bond buybacks, which the market interpreted as covert liquidity support. The limit for a single operation will rise from $2 billion to at least $4 billion, taking effect from September 9. This decision triggered a decline in 30-year Treasury yields by 9 basis points to 5.18%, which is traditionally positive for risk assets.
Meanwhile, U.S. President Donald Trump has intensified pressure on Congress to advance the crypto market structure bill, the CLARITY Act, which has stalled in the Senate. This adds hope for clarification of the regulatory environment.
Altcoins and Fed Rate Prospects
The rally has affected nearly the entire top 10. Ethereum rose 17.7% to $2,260, Solana gained over 11% (around $85), and XRP appreciated to $1.10. HYPE stands out with a gain of over 20%, while BNB showed a modest 4%.
However, the macroeconomic backdrop remains ambiguous. The FOMC meeting minutes from July 28–29 showed that three committee members advocated for a 25-basis-point rate hike. The market estimates the probability of holding rates steady in September at 67–74%, leaving room for surprises.
My analytical conclusion: The current surge is a classic short squeeze, amplified by liquidity inflows. However, the sustainability of the movement will depend on BTC's ability to hold above $70,000 and on Fed rhetoric. For now, fundamental drivers look convincing, but volatility will remain high in the coming weeks.