Bitcoin up 21% in 8 days — Treasury buybacks, a White House meeting, and a short squeeze all converged

What Happened

Bitcoin rose from the $63,500 range on August 14 to the $77,000 range on August 21, up about 21% in just 8 days. The move, which might have happened once a day at most, came from three events overlapping at the same time.

1. The U.S. Treasury Doubled Its Long‑Term Treasury Buyback

On August 19, Treasury Secretary Wes Besen announced that the “liquidity‑support buyback” for 10‑ to 30‑year Treasury bonds would be increased from $2 billion per auction to more than $4 billion (effective September 9).

Why does this lift coins? When the government buys long‑term bonds, long‑term yields fall (the 30‑year yield dropped from a 19‑year high of 5.34% to 5.19%) and the dollar weakens. Lower yields give investors a reason to move money from “safe bonds” into risk assets (stocks, coins). On the day of the announcement, Bitcoin jumped about 8% in three hours, climbing from an intraday low of $64,112 to $69,698.

2. A Crypto Meeting at the White House

The same day, the White House hosted a meeting with President Trump, SEC Chair Gary Gensler, CFTC Chair Rostin Behnam, and industry representatives from Coinbase, Ripple, Kraken, a16z, Chainlink, Kalis, and others. The topics were real‑asset tokenization, prediction markets, and regulatory clarity, and the first meeting of the CFTC Innovation Advisory Committee (35 members) was launched there.

Having the heads of the two main regulators in the same room was read as a signal that “the U.S. wants to bring the crypto industry into the mainstream.” On the day Ripple’s CEO attended, XRP rose more than 10% in a single day.

3. A Short‑Squeeze Fueled the Fire

If the three items above were the spark, the short‑squeeze was the flame. For more than six weeks, many traders held short (sell) futures positions betting that prices would keep falling. When the price suddenly rose, those positions were forced to close (liquidated) by the exchanges. Closing a short requires buying the coin, so the liquidations triggered buying, which pushed the price higher, which caused more liquidations—a chain reaction.

• August 19: $1.74 billion of short positions liquidated in one day – the second‑largest ever (the largest was on October 10 2025 during a crash).
• Two‑day total: about $3.5 billion liquidated, over $3 billion of which were shorts, affecting roughly 160 k traders.
• Bitcoin moved from $64,500 to $77,000 (+20%); it even touched near $78,000 on August 21.

Current Market Numbers (AntProfit Measurements – August 22 08:50 UTC)

The figures below are not from other articles; they are values we read directly from 21 exchanges.

Top‑gaining coins in the last 24 h (Binance spot, $20 M+ volume): TRUMP +55.7% · POL +32.0% · ZEC +24.7% · PEPE +15.5% · AAVE +11.2% · XRP +10.3% ($1.52)
Biggest losers: HEMI −11.2% · ASTER −9.9% · XPL −5.1%

A funding rate of 0.01% means “this rally is not yet driven by an over‑enthusiastic long side.” Conversely, a negative kimchi premium shows Korean investors are not chasing the rise. Both numbers say the same thing — the current rise is buying caused by forced short closures, not fresh money flowing in.

Guidance by User Type

If You Hold Futures Short (Sell) Positions

A surge feels to shorts like a crash. The higher the price, the bigger the loss, and when margin runs out the exchange will force‑close (liquidate) the position. The distance to liquidation varies with leverage (approximate, before isolated‑margin or maintenance‑margin deductions):

• Right now, check the “liquidation price (forced‑close price)” of your position against the current price in your exchange app. If you use cross margin, the whole wallet balance is considered for liquidation.
• A 0.01% funding rate means shorts receive almost no funding income, so “hold on and earn funding” is unrealistic.
• Whether to add margin or reduce the position is up to you — but it’s better to decide what you’ll do at which price before you’re rushed.

If You Hold Spot or Long Positions

Your portfolio value likely rose thanks to the surge. Look at two things:

• The 24‑hour −1% is a pull‑back; the RSI is at 74, indicating short‑term overbought. In July, a similar spike gave back all gains within a month.
• Setting a target price to sell part of your holdings now can protect you from a sudden drop. AntProfit’s scheduled orders let you place automatic sell orders at your chosen price.

If You Have Scheduled Orders

• Sell orders: They may have filled during the rally. Check your plan manager for fill status and price.
• Buy orders: Your limit price might now be far from the market. Decide whether to keep them or adjust the price.

If You’re Watching the Market

• A kimchi premium of −1% means you can buy the same Bitcoin in Korea about 1% cheaper than abroad (normally it’s positive).
• Two major events are coming in the next two weeks (see below). Volatility often spikes around them, so just knowing the dates can help you stay prepared.

What to Watch Next

1. September 15 – U.S. Senate vote on the CLARITY bill. The bill decides whether the SEC or the CFTC will take primary jurisdiction over crypto. Expectations rose after the White House meeting, but the prediction‑market (Polymarket) gives the bill only about a 20% chance of passing this year. Passage would be bullish; a delay could turn optimism into disappointment.
2. September 15‑16 – FOMC meeting (U.S. interest‑rate decision). Rates are currently on hold at 3.50‑3.75%. Some officials are even discussing a rate hike in September. Higher rates would reverse the “rate‑cut/dollar‑weakness” narrative that helped the recent rally.
3. $87,500 level. This was Bitcoin’s price on Jan 1 2024 (the Jan 2024 high was $97,900). Analysts say “you need to break this to start talking $100k.” Until then, a $77,000‑$87,500 box range is often mentioned.
4. Funding rate and kimchi premium. If the funding rate climbs above 0.05%, it signals an over‑crowded long side. If the kimchi premium turns positive again, it shows domestic buying interest. AntProfit updates these two numbers daily in its coin news.