Bitcoin and Ethereum have broken sharply higher after weeks of compressed trading, with BTC briefly touching $70,000 and Ether gaining almost 18% as fresh liquidity, institutional inflows and forced short covering hit the market at the same time.
Bitcoin traded near $69,400 in the latest market check, up more than 7% over 24 hours, while Ethereum changed hands around $2,250, up roughly 18%. The move represents a major shift from last week, when Bitcoin was stuck near $63,900 as spot trading volume fell to its lowest level since 2019.
Altcoins have followed rather than being left behind. Solana posted double-digit gains during the surge, BNB climbed about 4%, and the broader altcoin market added roughly 7% as capital spread beyond BTC.
The largest macro catalyst arrived from the U.S. Treasury. The department doubled the maximum size of long-term Treasury buybacks from $2 billion to at least $4 billion per operation for securities in the 10-to-30-year maturity range, beginning September 9.
Long-term yields fell immediately after the announcement, while the dollar weakened. The 30-year Treasury yield dropped toward 5.20% and the 10-year moved toward 4.65%, reversing part of the bond-market shock that had been pressuring risk assets.
Crypto reacted aggressively because the market had been positioned for continued liquidity stress. More than $1.2 billion of bearish crypto positions were liquidated in roughly one hour as Bitcoin accelerated through resistance, forcing short sellers to buy back positions into an already rising market.
Institutional demand had already started improving before the breakout. Farside’s spot Bitcoin ETF flow tracker recorded $297.5 million of net inflows on August 17 and another $189.3 million on August 18, reversing the heavy redemption pressure that dominated earlier summer trading.
Ether funds followed with $30.9 million and $71.4 million over the same two sessions. Ethereum also entered the rally with stronger onchain participation after daily new ETH addresses jumped 75% from August 8 to August 16.
Washington supplied another layer of buying sentiment. The SEC has now proposed dedicated crypto fundraising rules with exemptions reaching $75 million annually, while President Donald Trump used an August 19 White House meeting with crypto executives to press Congress for broader market-structure legislation.
That regulatory boost has arrived even as CLARITY Act prediction-market odds collapsed to just 20%, leaving agency rulemaking as the more immediate policy catalyst.
Ethereum’s outperformance is the strongest sign that the rally has moved beyond a Bitcoin-only squeeze. ETH pushed from below $2,000 through $2,100 and above $2,250 in a single session, while Bitcoin dominance remains near 56%.
The wider crypto market capitalization gained roughly 7% over 24 hours, with altcoin capitalization expanding at a similar pace. That breadth separates the move from several earlier 2026 Bitcoin rebounds where smaller assets failed to participate.
Altcoins are participating more broadly in the rebound, but Bitcoin still controls much of the market’s liquidity and momentum. Wednesday’s acceleration was amplified by a heavy short squeeze, so continued gains across ETH, SOL and other large-cap tokens will depend increasingly on fresh spot buying rather than forced liquidations.
Bitcoin was trading near $69,400 early Thursday after briefly reaching $70,000, while Ethereum held near $2,250 after its strongest daily advance in months.
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