Bitcoin Tops $75K over US Treasury Buybacks Euphoria
Bitcoin (BTC) price increased by 8.45% in 24 hours, topping $75K in the latest rally amid euphoria over a US Treasury liquidity signal from the buyback plan.
Expectations of a significant liquidity surge in the US next month have been fueling early positioning in the cryptocurrency market, with Bitcoin, Ethereum, and other top altcoins attracting funds.
Trading data from key exchanges showed BTC hovering around $75,293, adding to a broad market rally catalysed by dual macro and regulatory catalysts from Washington.
The digital asset maintains an uptrend on a surprise U.S. Treasury announcement to double long-term bond buybacks, coupled with President Trump’s push for pro-crypto legislation, which ignited bullish sentiment and a liquidity narrative.
On August 20, the U.S. Treasury announced it would at least double its buybacks of longer-dated government bonds to improve market liquidity.
Concurrently, President Trump hosted crypto executives and urged Congress to pass the Clarity Act, reinforcing a pro-innovation stance. This combination was interpreted as a de facto easing of financial conditions, making scarce assets like Bitcoin more attractive.
The rally was fundamentally triggered by a shift in macro liquidity expectations and reduced regulatory uncertainty, not just speculative trading.
Sustained spot Bitcoin ETF inflows, which saw a $517 million single-day surge, confirmed institutional endorsement of this narrative.
The initial surge forced a cascade of liquidations, with over $788 million in Bitcoin shorts liquidated in 24 hours.
Technically, Bitcoin decisively broke and held above its 200-day simple moving average (now ~$64,982), confirming a major trend shift.
While derivatives activity amplified the move, the clean breakout above a key long-term trend indicator adds technical conviction.
The immediate bullish case hinges on holding the 50% Fibonacci retracement level at $72,294 as support. The next significant resistance is the True Market Mean at $75,800.
The scheduled Senate vote on the Clarity Act on September 15 is a concrete event that could sustain or dampen regulatory optimism. The trend is bullish but extended, making the market vulnerable to a pullback if the $72k support fails.
Bitcoin’s surge is rooted in a powerful mix of improved macro liquidity and political tailwinds, amplified by a historic short squeeze. The breakout has shifted the technical structure to a bullish bias.
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