20th August 2026 – (New York) Bitcoin sprang higher to trade above $71,000 today, marking its highest level since early June after a sharp, two‑day advance revitalised risk appetite across digital assets. The surge followed a White House gathering where President Donald Trump and senior regulators pressed Congress to pass the industry’s long‑sought Clarity Act, a market‑structure bill viewed by traders as a potential catalyst for mainstream adoption.
Momentum accelerated as the US Treasury said it would increase the size of its long‑dated liquidity‑support buybacks from a cap of $2 billion to at least $4 billion per operation starting 9th September, a move that coincided with falling long‑term yields and a softer dollar. While not monetary stimulus, the tweak eased bond‑market strains and emboldened flows into risk assets, including cryptocurrencies.
Derivatives dynamics amplified the jump. As prices pushed through resistance near $69,000, exchanges triggered a rush of forced closures on bearish bets, with more than $1 billion of bitcoin short positions liquidated within about an hour — the biggest wave since March — intensifying the squeeze.
Spot exchange‑traded fund activity has also brightened in August after a weak July, with several sessions of net inflows earlier this month pointing to renewed demand from traditional investors even as daily figures remain volatile. Traders say sustaining levels above $70,000 would convert a major resistance zone into support and keep the focus on the upper reaches of this year’s trading range.
Market participants are now watching whether legislative progress on the Clarity Act — alongside steadier macro conditions following Treasury’s buyback adjustment — can underpin a more durable phase of accumulation.