US Treasury Bond Buyback Triggers $1.5 Billion Short Squeeze as Bitcoin Hits $69.5K
A surprise US Treasury announcement to double bond buybacks triggered a massive liquidity surge, wiping out over $1.5 billion in shorts. Bitcoin reached $69,500 while 30-year yields fell sharply, pushing capital back into risk assets. Traders now watch the key $69,110 daily close to confirm if this rally has macro legs.
The US Treasury delivered a liquidity jolt to global markets on Wednesday, announcing it will double long-term bond buybacks to four billion dollars per operation. The move dragged 30-year Treasury yields down from 5.33% to 5.19%, firing the starter pistol for a risk-on surge across digital assets.
Bitcoin charged straight to $69,500, forcing a massive $1.23 billion short squeeze inside a single hour as leveraged bears were caught completely off guard. Total 24-hour short liquidations crossed $1.57 billion, with Ethereum jumping 9% to $2,088 alongside broad gains across Solana and XRP.
On-chain data from CryptoQuant shows 30-day spot and perpetual futures demand metrics both flipped positive simultaneously for the first time in months. However, with funding rates hitting 20-month highs and BTC running into a heavy fair value gap between $67,500 and $70,686, bulls must secure a daily candle close above $69,110 to keep the momentum alive.