Bitcoin climbed to a session high of $72,850 on Thursday, wiping out $650 million in short positions as a White House meeting on crypto policy and over $1 billion in ETF inflows fueled a four-day rally. Treasury Secretary Scott Bessent's hints at a bigger bond buyback added further momentum.
Bitcoin climbed to a session high of $72,850 on Thursday, extending a rally that has now erased hundreds of millions of dollars in leveraged short bets. Bitcoin surged past $72,000 to a session high of $72,850, lifting its market capitalization from $1.44 trillion to $1.45 trillion.
Short sellers get squeezed again
Since Monday, Aug. 17, when bitcoin traded around $63,500, the cryptocurrency has added approximately $9,000, a 14% gain in four days, narrowing its year-to-date losses to 17.4%. For the second consecutive day, the advance triggered a short squeeze that hit leveraged positions hard.
According to Coinglass data, bitcoin's price action wiped out $650 million in short bets, compared with $41 million in long bets. Across the wider crypto market, about $1.59 billion in short bets was liquidated versus $219 million in long bets.
A White House meeting adds fuel
Trump on Wednesday held a meeting at the White House with crypto executives including Coinbase CEO Brian Armstrong and Securities and Exchange Commission Chair Paul Atkins. Trump called the Clarity Act "very, very powerful" and urged lawmakers to pass it.
The bill, which would set rules for distinguishing digital assets that are securities, commodities, or payment stablecoins, passed the House last year but has stalled since, with a vote now expected in September.
Market strategists point to expanding liquidity expectations behind the rally. Treasury Secretary Scott Bessent hinted at debt-management interventions larger than the $4 billion buyback program unveiled Aug. 19. That buyback initially dragged the 10-year Treasury yield down to 4.63%, but the yield rebounded above 4.71% within 24 hours.
ETFs draw over $1 billion in three days
US spot Bitcoin ETFs pulled in over $1 billion over the past three days, helping push bitcoin toward nearly $73,000. On Wednesday alone, investors bought over $500 million worth of shares in funds managed by BlackRock, Fidelity, and Grayscale, according to Farside Investors data. Separately, BlackRock's iShares Bitcoin Trust has received $588.5 million since Monday.
For the Aug. 19 session, US spot Bitcoin ETFs recorded $517.2 million in net inflows, the strongest daily inflow in roughly three and a half months. BlackRock's IBIT led that session with $284.7 million. Spot Ethereum ETFs also stayed positive, adding $17.7 million in net inflows.
The inflows follow a week in which investors had cashed out over $385 million from US bitcoin ETFs after tensions in the Middle East escalated again.
Sources: Bitcoin News, Bitcoin Magazine, NewsBTC
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