Bitcoin tops $72K as Trump & Treasury buybacks trigger $3.1B shorts wipeout
Bitcoin jumped ~15% since Monday, breaking above $70,000 for the first time since June and reaching $72,207. Falling US Treasury yields helped risk assets, after the US Treasury said it would double planned liquidity-support buybacks for 10–30 year bonds to at least $4B per operation from $2B (starting Sept. 9), following a 30-year yield peak of 5.34%.
A policy catalyst also followed. At a White House meeting with Coinbase CEO Brian Armstrong, Ripple’s Brad Garlinghouse, and Kraken co-CEO Arjun Sethi, President Donald Trump urged passage of a “fair version” of the CLARITY Act. The bill aims to define which crypto assets fall under securities vs commodities rules and how regulators split oversight. A procedural vote is scheduled for Sept. 15, with 60 votes needed.
The rally then accelerated via forced positioning. CoinGlass data shows more than $3.1B in bearish crypto positions were liquidated in 24 hours versus about $277M in longs. Bitcoin accounted for roughly $1.8B of the short liquidations, including a largest single BTC liquidation of $48.8M on Hyperliquid.
However, traders face a shift from forced buying to market-driven demand. CryptoQuant noted Bitcoin’s move above ~$67,100 (short-term holders’ avg cost basis) put profit-takers in play, with over 44,300 BTC sent to exchanges. With the Fear & Greed Index rising to its highest since Oct. 2025 and Bitcoin clearing the 200-day moving average near $69,000, the next question is whether spot demand can absorb ongoing profit-taking after the liquidation cascade fades.
Bullish
This is bullish because the move combines (1) macro easing via lower Treasury yields from accelerated buybacks and (2) a policy tailwind tied to crypto regulation. On top of that, the market suffered a large short squeeze: $3.1B of bearish positions liquidated in 24 hours, with Bitcoin responsible for the majority. Historically, when a breakout is paired with heavy leverage unwind, price can extend quickly due to mechanical buying.
Short term, the main risk is profit-taking after the liquidation cascade. The article notes 44,300+ BTC sent to exchanges by short-term holders and that forced buying pressure has already “done its job.” If spot demand does not match that supply, Bitcoin could consolidate or retrace.
Long term, the CLARITY Act momentum and the broader willingness of US officials to expand crypto policy support can improve sentiment and reduce regulatory uncertainty—often benefiting risk appetite and liquidity. Similar episodes where regulatory headlines coincided with falling yields and leverage unwinds typically led to sustained uptrends, though with volatility around take-profit waves.