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Bitcoin Surges Towards $70,000 as Liquidity Boost and Short Squeeze Lift Crypto

Bitcoin Surges Towards $70,000 as Liquidity Boost and Short Squeeze Lift Crypto

Lower Treasury yields and stronger ETF demand are supporting broader participation across crypto markets.

Written by Rahul Dhingra, Edited by Rohan Pal | Updated: 20 August 2026 12:35 IST

Bitcoin Surges Towards $70,000 as Liquidity Boost and Short Squeeze Lift Crypto

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Ethereum and other major altcoins also gained as buying interest spread across the market

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Highlights

* Ethereum gains outpaced Bitcoin as broader crypto buying picked up
US Treasury buybacks helped ease pressure on bond yields
Bitcoin ETFs saw renewed demand as short liquidations surged

Bitcoin traded near Rs. 66.90 lakh on Thursday as the cryptocurrency market surged towards $70,000 (roughly Rs. 66.9 lakh) after improving liquidity conditions and a sharp unwinding of bearish positions. Ethereum (ETH) was trading near Rs. 2.1 lakh, while major altcoins also recorded gains. According to market participants, the US Treasury's decision to increase long-term bond buybacks helped ease pressure on Treasury yields and created a more supportive backdrop for risk assets. Heavy short liquidations further amplified the rally, while stronger demand for Bitcoin ETFs indicated renewed institutional participation. As per the CoinGecko data, Bitcoin traded near $69,300 (roughly Rs. 66.2 lakh) and Ethereum (ETH) was trading near $2,250 (roughly Rs. 2.15 lakh).

The world's largest cryptocurrency gained 7.4 percent in the last 24 hours, as per the Gadgets 360 price tracker. Analysts said the move higher has been supported by improving liquidity conditions after the US Treasury doubled certain long-dated bond buybacks from $2 billion to at least $4 billion (roughly Rs. 19,126 crore to Rs. 38,252 crore).

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Major altcoins traded with positive momentum on Thursday.

Binance Coin (BNB) was priced around $624.38 (roughly Rs. 59,709), while Solana (SOL) traded near $84.69 (roughly Rs. 8,099). XRP hovered around $1.10 (roughly Rs. 105), and Dogecoin (DOGE) was trading close to $0.075 (roughly Rs. 7.2), indicating broader participation across large-cap cryptocurrencies.

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Bitcoin Rally Gains Broader Market Support

Pointing to the factors behind Bitcoin's sharp move towards $70,000 (roughly Rs. 66.9 lakh), Prateek Gupta, Head of Business, Mudrex, said, “Bitcoin rallied from around $64,000 (roughly Rs. 61.2 lakh) to $70,000 (roughly Rs. 66.9 lakh), its highest level since June 2, after the US Treasury doubled its long-dated debt buybacks to at least $4 billion (roughly Rs. 38,252 crore) per operation. The move pushed the 30-year Treasury yield down to around 5.2 percent, easing liquidity concerns and making risk assets attractive. Additionally, Trump's push to pass the CLARITY Act also improved market sentiment, further amplifying the buying pressure.”

Highlighting the role of improving liquidity and the unwinding of bearish positions, Avinash Shekhar, Co-Founder & CEO, Pi42, said, “More than $1 billion (roughly Rs. 9,563 crore) in Bitcoin shorts were liquidated within a short period, accelerating the move higher. The broader participation is also encouraging, with Ethereum posting an even stronger breakout and moving above key technical levels, suggesting that buying interest is beginning to extend beyond Bitcoin alone [...] Investors should avoid chasing sharp intraday moves and instead look for confirmation that prices can consolidate above these levels.

Assessing the impact of stronger ETF demand and the broader market rally, Vikram Subburaj, CEO, Giottus.com, said, “The rally is not entirely driven by leverage. US spot Bitcoin ETFs attracted about $651 million (roughly Rs. 6,227 crore) over the three sessions to 19 August, reversing the previous week's $385 million (roughly Rs. 3,679 crore) outflow and showing that direct investor demand has returned. Investors should avoid chasing a sharp 1-day rise or using high leverage. Staggered purchases and smaller position sizes are safer while the market awaits US PCE inflation on August 26 and the Federal Reserve's decision on September 16.”

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Overall, the US Treasury's larger long-term bond buybacks have helped ease pressure on yields, while substantial short liquidations have accelerated the move. Bitcoin's ability to hold above $68,500 (roughly Rs. 65.51 lakh) and establish a sustained move beyond $70,000 (roughly Rs. 66.94 lakh), while avoiding a pullback towards $65,000 (roughly Rs. 62.16 lakh), will be important for confirming whether the latest rally can develop into a broader recovery.

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Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: Cryptocurrency, Crypto Markets, BTC, ETH, Bitcoin

Rahul Dhingra

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Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More