Headline: Bitcoin’s Biggest One-Day Rally in Five Months Sparks a Prediction-Market Shakeup Bitcoin tore through $69,000 on Wednesday, jumping as much as 8.7% to an intraday high of $69,749 — its steepest one-day gain since March 4 and the highest print since June 1. Traders hadn’t seen a green candle like this in over five months, and the sudden surge has flipped short-term sentiment from bearish to practically a coin toss. What moved the market - The immediate catalyst appears macro, not crypto-native: the U.S. Treasury said it will double the size of its long-bond buybacks from $2 billion to $4 billion per operation starting Sept. 9. That announcement pushed long-end yields lower and weakened the dollar — conditions that typically help risk assets like Bitcoin by lowering the opportunity cost of holding a non-yielding asset and making dollar-priced assets cheaper for foreign buyers. Analysts have dubbed this move “QE Lite.” - The timing coincided with a White House meeting between crypto executives and regulators and a new SEC proposal easing registration rules for certain digital-asset offerings — a regulatory tailwind that amplified the rally. Liquidations and market impact - The squeeze was violent: CoinGlass’s liquidation report shows $1.14 billion in short liquidations across crypto in a single hour, with Bitcoin responsible for $677.64 million of that wipeout. - Crypto-linked equities jumped as well: Strategy surged nearly 12%, Coinbase climbed about 9%, and Circle and BitMine rose roughly 9–10%. Prediction markets flip - The rally blindsided prediction markets that had been betting on more downside. Myriad (operated by Decrypt’s parent company) had traders roughly 70% in favor of a drop to $55K just days earlier. By Wednesday afternoon those odds collapsed to a near coin flip: 51.9% on $55K vs. 48.1% on $84K. - Other platforms showed similar repositioning: Polymarket a week earlier priced a 56% chance BTC would hit $55K before year-end and 51% odds of a $75K run; Kalshi had more cautious August bets — 54% chance of $67,500 and 31% of $70,000 — both of which Bitcoin cleared on Wednesday. - The rapid shift in prediction markets reflects who got squeezed more than it forecasts what comes next; many short-term markets and hedges were caught flat-footed by the unexpected 7–9% green day. What to watch technically - The next line in the sand sits at $70,284 — the lower edge of a resistance band. A daily close above that level would open upside toward $73,245. - Conversely, losing $68,000 would likely pull Bitcoin back into the trading range that has contained it since June. Bottom line: Wednesday’s move was fueled by a mix of macro easing, regulatory developments and a classic short squeeze. Prediction markets that had been leaning bearish flipped quickly, but longer-term markets barely budged — suggesting the rally forced a recalibration rather than rewriting year-end expectations. Read more AI-generated news on: undefined/news