Bitcoin Surges to 11-Week High

Bitcoin climbed about 11% since early this week toward $70,000 in mid-August, reaching its highest level since early June, as optimism over a more crypto-friendly US policy stance sparked a rebound that was amplified by a wave of short liquidations. President Donald Trump met with crypto executives at the White House and urged Congress to pass legislation expected to support the digital-asset sector, boosting sentiment across the crypto market. More than $1 billion in Bitcoin short positions were liquidated in about an hour, while total crypto short liquidations reached a record $2.7 billion, further accelerating the rally. Falling Treasury yields provided another tailwind after the US Treasury said it would at least double buyback operations for long-dated government bonds, improving the backdrop for risk assets. US spot Bitcoin ETFs recorded $517 million in net inflows, their highest since May.

Bitcoin traded around $63,500 in mid-August, remaining in a tight range since early July and down roughly 50% from its record high reached last October. Uncertainty over the Federal Reserve’s interest-rate path and stalled negotiations on the US Clarity Act continued to keep buyers on the sidelines. The Senate has now pushed a procedural vote on the bill to September 15. Institutional demand also showed signs of fragility, with US-listed spot Bitcoin ETFs recording $389.7 million in net outflows in the week of August 10. This reversed $853.5 million of inflows the previous week and marked the funds’ largest weekly outflow since late June. The selling came after ETF demand strengthened in early August, partly following the Coldcard wallet hack, which briefly renewed interest in gaining Bitcoin exposure through traditional investment products.

Bitcoin traded around $65,300 in late July, moving within a tight range after plunging to a nearly two-year low earlier this month, as improving sentiment across risk assets was offset by softening ETF demand. The US and Iran extended a pause in retaliatory strikes, easing some concerns over deeper disruptions to regional energy supplies following the recent escalation in tensions. Still, gains were capped by significant outflows from US-listed Bitcoin ETFs, which recorded more than $465 million in net outflows on July 23 and July 24, ending a seven-session inflow streak as investors grew concerned that the Federal Reserve could keep rates elevated for longer. However, the selling pressure was not enough to erase weekly gains, with ETFs posting $33.8 million in net inflows over the period. Meanwhile, markets are tracking developments around the Clarity Act, a long-awaited US cryptocurrency market-structure bill, as negotiations stalled over ethics provisions.