Bitcoin Hits $70K As Treasury Intervention Sparks Short Squeeze

Bitcoin surged from roughly $64,100 to nearly $70,000 in a matter of hours after the US Treasury unexpectedly doubled its planned buybacks of long dated government debt. The policy shift pushed bond yields lower and forced roughly $1.4 billion of crypto short positions out of the market in just four hours. The Treasury announced it would raise the maximum size of its liquidity support buybacks for 10 year to 30 year securities from $2 billion to at least $4 billion per operation.

Despite the rapid price action, the rally faced immediate resistance near the 200 day moving average around $69,000. This area aligns with the short term holder cost basis, meaning recent buyers reached breakeven and paused further buying. Meanwhile, Federal Reserve minutes released the same day showed that several officials favored a rate hike at the July meeting, keeping future monetary tightening firmly on the table if inflation persists.

Traders are now watching bond yields and upcoming supply pressures to see if the momentum can hold. A large 20 year Treasury auction required higher yields shortly after the announcement, showing that real buyers still demand a premium for holding long term debt. With heavy corporate bond issuance expected in September, Bitcoin and other risk assets must navigate rising competition for capital while the Federal Reserve weighs its next moves.