The recent spike in Bitcoin ($BTC )—which jumped over 25% to surpass $80,000—was driven by a combination of macroeconomic moves, liquidity shifts, and technical leverage flushes:
US Treasury Bond Buybacks: The primary trigger occurred on August 19, when the US Treasury announced it would double its long-term bond buyback program from $2 billion to $4 billion per operation. This pulled down long-term Treasury yields and weakened the US dollar. Lower yields revived the "debasement trade," pushing capital into non-yielding, scarce assets like Bitcoin and gold.
Massive Short Squeeze: Because many traders were positioned for a market downturn, the sharp upward move triggered massive liquidations of short positions—wiping out over $1 billion in bear bets in a single day. Forced buying from short sellers covering their positions accelerated the price spike mechanically.
Rebound in ETF Inflows: Following the Treasury announcement, spot Bitcoin ETFs recorded their highest single-day net inflows in months (over $500 million in a single day), providing actual spot demand behind the derivatives movement.
