Treasury’s $14 Billion Buyback Triggered a $3.5 Billion Crypto Short Squeeze

Bitcoin jumped roughly 25% to a two-month high above $77,000 within hours of the U.S. Treasury doubling its long-dated bonds buyback operations on August 19. Falling Treasury yields triggered a short squeeze estimated $3.5 billion across crypto derivatives.

The move raises a pointed question: did Bitcoin catch a genuine liquidity tailwind, or trade a one-day signal that the bond market itself partially reversed within 24 hours?

BREAKING: Crypto markets officially post their 7th largest liquidation event in history, with $3.5 billion in levered positions liquidated in 24 hours.

In 24 hours, crypto markets added +$280 billion in market cap.That's +$12 billion in market cap per hour for 24 hours… pic.twitter.com/zpEsLeRhp9— The Kobeissi Letter (@KobeissiLetter) August 20, 2026 Treasury Secretary Scott Bessent’s move came a day after the 30-year Treasury yield hit 5.34%, its highest level since 2007, amid a global bond selloff tied to inflation worries, an escalating U.S.-Israeli conflict with Iran, and mounting concern over the U.S.