Bitcoin nears $70,000 as crypto hits greed mode on CLARITY Act

Bitcoin rose nearly 8 percent to $69,700 on Wednesday, a two-month high, as expanded US Treasury bond buybacks and CLARITY Act optimism lifted the broader crypto market.

Paul Howard, senior director at digital-asset trading firm Wincent, said the Treasury's decision to at least double buybacks of long-dated government bonds to $4 billion or more per transaction added liquidity support at the long end of the US yield curve.

The move triggered roughly $1.3 billion in short liquidations within an hour, with more than half tied to bitcoin pairs, CoinGlass data cited by CoinDesk showed. Ethereum climbed about 9 percent, while XRP and Solana each gained around 6 percent. The 30-year Treasury yield fell about 8 basis points to 5.20 percent, and the dollar weakened.

Bitcoin now presses against the psychologically important $70,000 level. A sustained close above roughly $70,000-$70,300 would bring $73,000-$76,000 into view, while support sits at $66,500-$68,000.

Treasury Buybacks and the CLARITY Act Drive the Rally

The US Treasury announced it would at least double the volume of buyback operations involving long-term government bonds, to $4 billion or more per transaction. The move pushed the 30-year yield down around 8 basis points to 5.20 percent, with a similar decline in 10-year securities, and weakened the dollar as demand for risk assets increased.

Investor optimism over the CLARITY Act, a US crypto regulatory bill, added to the bullish backdrop. The crypto market's fear-and-greed gauge flipped into "greed" territory as of 21:23 ET on August 19, a reading not seen in months.

Technical Breakout Points to $76,000

Market technician Aksel Kibar identified $66,600 as the neckline of an inverse head-and-shoulders formation developing since Bitcoin's June lows. Wednesday's surge carried BTC decisively through that level, producing a measured upside objective around $76,000.

Crypto trader Michael van de Poppe was more cautious, expecting some retracement before the next leg higher. He highlighted $66,500-$67,000 as a potential buying area before a renewed move toward $72,000-$73,500.

Standard Chartered's Geoffrey Kendrick maintained his $100,000 end-2026 Bitcoin target, arguing the worst of the decline could already have passed.

The rally's speed raises the risk of short-term volatility, as a large part of the move was amplified by forced short covering. A retreat that holds the $66,500-$68,000 zone would leave the breakout intact, while a sustained fall back below $66,500 would raise doubts over whether Wednesday's surge was primarily a short squeeze.

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