Crypto markets surged on Thursday as a Treasury Department move to expand bond buybacks sparked a wave of buying across digital assets and stocks alike.
Ether led the charge, jumping roughly 18% in 24 hours to just above $2,250. That pushed its weekly gain to around 20%, the best performance among major cryptocurrencies.
Bitcoin rose to just above $69,100, up about 8% on the day. It briefly touched nearly $69,900 overnight before pulling back slightly. That represents a swing of more than $5,700 from Wednesday’s low near $64,100.
The catalyst came from Treasury Secretary Scott Bessent, who announced the department would at least double the size of its buyback operations for longer-duration bonds. Traders read this as a boost to liquidity in the broader Treasury market.
BREAKING: The US Treasury announces it will double the size long-term US government debt buybacks following the rapid surge in US Treasury yields.
Repurchases of $2 billion will now be increased to "at least" $4 billion, the US Treasury said.
The move is intended to provide…
— The Kobeissi Letter (@KobeissiLetter) August 19, 2026
Bond prices rose sharply in response. The 10-year Treasury yield fell to around 4.63%, while the 30-year dropped to 5.18%. A Bloomberg index tracking Treasuries maturing in 20 years or more posted its biggest single-day gain since February 2025.
As prices jumped, nearly $1.4 billion in short positions were liquidated in just four hours on Wednesday. Bearish traders rushed to close positions as the market moved against them.
Other cryptocurrencies also posted strong gains. Hyperliquid’s HYPE rose over 19% to just under $70. Solana climbed over 10% to $84.50. XRP gained 10% to $1.09, recovering the dollar level it had lost earlier in the week. Dogecoin added about 8%.
BNB and Tron lagged behind. BNB rose 3.5% but held a weekly gain of just over 2%. Tron was nearly flat and was the only major cryptocurrency down on the week.
A White House event added to the positive mood. President Donald Trump appeared alongside executives from Coinbase, Gemini, Ripple, and Chainlink Labs and urged Congress to advance the Digital Asset Market Clarity Act.
US stocks gained on the back of the bond market move. The Dow Jones Industrial Average rose about 120 points, or 0.2%. The S&P 500 and Nasdaq each gained around 0.2%.
Health care was a top-performing sector, helped by a Moderna cancer vaccine development. Consumer discretionary and materials also outperformed. Tech and industrials lagged due to continued selling in artificial intelligence infrastructure stocks.
Minutes from the Federal Open Market Committee showed a divide among policymakers on whether rates may need to rise to fight inflation, but markets largely brushed off the release.
Ether remains a key level to watch. Analysts note that a move of this speed driven by a liquidity headline, rather than anything specific to Ethereum, often gives back some of its gains.
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