Bitcoin Jumps on Citigroup Custody Service Update, US Treasury Policy
Bitcoin (BTC) price rose by 6.27% in the last 24 hours to $72,508, leading a broad market rally, driven primarily by a major macro liquidity signal from the US Treasury and optimism surrounding Citigroup’s venture into BTC custody services.
The US Treasury announced on August 19 it would double the size of its long-term bond buyback operations from $2 billion to at least $4 billion, effective from September 9 to November 4.
This pushed the 30-year Treasury yield down from 5.337% to around 5.18%, easing financial conditions and weakening the dollar. Lower yields reduce the opportunity cost of holding non-yielding assets, making Bitcoin more attractive.
The rally was sparked by a direct intervention in the bond markets, which was interpreted as a bullish liquidity signal for scarce assets. Any reversal in Treasury yields or comments from the Treasury’s quarterly refunding announcement in late October.
The initial breakout triggered a cascade of liquidations, with over $1.9 billion wiped from the crypto market in 24 hours, including $1.74 billion from short positions.
Concurrently, former President Donald Trump stated that the U.S. is considering buying “sizable” amounts of Bitcoin and urged Congress to pass the CLARITY Act to improve regulatory expectations.
Leveraged bearish positions were forcibly closed, adding fuel to the rally, while political support provided a fundamental tailwind. Bitcoin has reclaimed its 200-day Exponential Moving Average near $71,600, a key bull/bear divider. The next major resistance is the $75,000–$76,638 zone.
The upcoming Senate vote on the CLARITY Act in September is a concrete regulatory trigger. The trend has turned bullish, but the move is extended with RSI above 83, signaling overbought conditions.
Price action around $71,600 support; a sustained break above $72,930 (recent swing high) could extend gains. The confluence of a macro liquidity injection, a violent short squeeze, and warmer regulatory rhetoric has powered Bitcoin’s sharp rally above key technical levels.
Citigroup announced its “Custody+” service on August 18, aiming to bring Bitcoin onto its institutional custody rails, which hold $34.5 trillion in assets.
This follows similar moves by BNY Mellon and State Street, marking a full-scale Wall Street entry into digital asset custody following favourable 2025 regulatory changes.
This is bullish for Bitcoin’s institutional adoption, as it validates the security of the asset for large traditional players.
It presents a competitive threat to crypto-native custodians like Coinbase, which currently holds over 80% of U.S. spot Bitcoin ETF assets, potentially pressuring fees and service bundling. Bitcoin Gains 8% on U.S. Treasury Policy, Crypto Rulebook
