Bitcoin jumps 6% to $68,500 as $1.44B short squeeze hits crypto

Bitcoin rose 6% to $68,509 on Aug. 19 as $1.44 billion in short positions were liquidated, with Ethereum climbing 9% above $2,100.

Coinglass data shows $1.61 billion in total crypto liquidations over 24 hours, with $1.44 billion from shorts — an 8.6x asymmetry against $168 million in long positions.

Bitcoin accounted for $893 million in liquidations, including $861 million from shorts, with $531 million wiped out in a single hour. Ethereum saw $469 million liquidated, $424 million from shorts, as the two assets represented roughly 85 percent of all crypto liquidations. XRP and Solana each gained more than 6 percent, extending the recovery across major assets.

Bitcoin's next resistance sits near $70,000 after touching $69,698 intraday, with support at $65,000-$66,000, as traders watch whether ETF inflows extend beyond the $487 million two-day total.

The move traced to a specific sequence. The U.S. Treasury said it would at least double long-end liquidity buybacks to $4 billion per operation, effective Sept. 9, sending long-term yields lower and the dollar weaker. Falling yields reduce the opportunity cost of holding non-yielding assets like Bitcoin, while a softer dollar typically accompanies broader risk appetite.

Institutional flows confirmed the bid. U.S. spot Bitcoin ETFs recorded $297.6 million in inflows on Aug. 17 and $189.3 million on Aug. 18, a two-day total of roughly $487 million led by BlackRock's IBIT, reversing recent outflow pressure.

Regulatory signals added to the backdrop. The White House hosted a meeting bringing together President Trump, senior crypto executives, and SEC and CFTC leadership, while the SEC proposed a Regulation Crypto Assets framework to clarify fundraising rules. Both developments reduce regulatory uncertainty and support institutional participation.

The mechanics of the cascade

When leveraged shorts face margin calls, exchanges automatically close positions by buying back the asset, and each forced buy pushes price higher, triggering more closures. The $1.44 billion in shorts versus $168 million in longs shows a market heavily positioned for downside that was caught off-guard.

Short squeezes driven purely by forced covering tend to fade once the buying exhausts. The Aug. 19 move carries structural support: the Treasury buyback is a scheduled policy change with a measurable effect on yields, the $487 million in ETF inflows represents real capital entering through regulated vehicles, and the regulatory signals are longer-term positives. That combination distinguishes the move from a purely mechanical event.

What to watch

The rally's durability depends on whether ETF inflows extend into subsequent sessions, whether Treasury yields hold at lower levels, and whether Bitcoin sustains above $65,000-$66,000 as the mechanical short covering fades. Fed communications will determine whether the easing narrative gains traction.

This article is for informational purposes only and does not constitute investment advice.