Bitcoin Surges Past $75,000 Amid Treasury Buybacks and Short Squeeze

The price of Bitcoin soared past $75,000 late on a Thursday, crossing the threshold for the first time since May, according to reporting from Forbes. The world’s most valuable cryptocurrency by market cap rose to $75,268 early Friday, marking an increase of more than $10,000 over a two-day span.

Bitcoin Surges Past $75,000 in Market-Wide Rally

The broader digital asset market participated extensively in the upward movement. Ether, recognized as the second-most valuable cryptocurrency by market cap, climbed to $2,363 early Friday, representing an increase of more than 25% from the preceding week. Additional major tokens also experienced gains in a 24-hour window, with Solana’s SOL rising 7%, Binance’s BNB increasing 6.4%, XRP advancing 19.3%, and the memecoin DOGE growing 11.3%, as detailed by Forbes.

Treasury Intervention and White House Engagement

The wider crypto market surge originated following a series of significant macroeconomic and political developments that began on Wednesday. President Donald Trump hosted several crypto and finance industry executives for an event at the White House, where he called on Congress to pass the industry-backed digital assets legislation known as the CLARITY Act.

At the White House event, President Trump emphasized the legislation’s strategic importance, stating: We need Congress to take the next step by passing the CLARITY Act, a fair version of the CLARITY Act…It’s a very, very powerful structured legislation which will keep us ahead of China, keep us ahead of everyone else.

Bitcoin Surges Past $75,000 Amid Treasury Buybacks and Short Squeeze — Photo: Bitcoinfoundation

Simultaneously, the macroeconomic landscape shifted when the US Department of the Treasury announced plans to at least double the scope of its buybacks of long-term government bonds starting in September, increasing the operation size from $2 billion to at least $4 billion per operation. This decision followed a rise in 30-year US Treasury bond yields to levels unseen since 2007. The announcement successfully drove yields down, weakened the US dollar, and amplified risk appetite across financial markets, prompting positive reactions in certain stocks and gold alongside cryptocurrencies.

Derivatives Liquidation and Short Squeeze Impact

The upward price momentum received further acceleration from the derivatives market, where short sellers absorbed heavy losses. Data tracked by Coinglass indicated that more than $1.25 billion worth of crypto short positions were liquidated over a 24-hour period, with approximately $750 million of those forced liquidations consisting of bets against Bitcoin. Additional estimates from Jpost noted that approximately $1.4 billion in short positions were liquidated in a four-hour window as traders betting on price declines were forced to buy back assets to close transactions, bringing total forced liquidations over several days to nearly $2 billion.

While the Treasury’s bond market intervention was aimed primarily at improving market liquidity within a $32 trillion bond market rather than executing quantitative easing, the government’s intervention sent a powerful signal to investors. Combined with falling yields, a weaker dollar, positive regulatory developments, and a severe short squeeze, the digital asset market experienced a rapid shift in sentiment after months of pressure from high interest rates and macroeconomic headwinds.