Bitcoin holds above $77,000 after Treasury-fuelled short squeeze

In August 2026, major indices showed gains, with the S&P 500 up 2.34% month-to-date. The 30-year Treasury yield hit a 19-year high before the U.S. Treasury intervened. Moderna (MRNA) and Merck (MRK) reported successful mRNA cancer vaccine trial results, boosting MRNA shares. Bitcoin (BTC) rose above its 200-day moving average. Geopolitical tensions and upcoming events like Jackson Hole and G7/G20 meetings are monitored for market impact.

Bitcoin (BTC) dropped to $77K on August 22, 2026, triggering $475M in long position liquidations. The pullback followed a 30% rally, with overbought technical indicators. Macro factors, including US Treasury bond buybacks and regulatory clarity, had fueled the prior rally. Traders are watching $77K as potential support.

Bitcoin and gold prices surged this week, with bitcoin rising above $77,000 and gold reaching $4,661. The rally was driven by Treasury bond buybacks and potential crypto legislation, as investors moved towards alternative assets. The Treasury's actions aim to calm bond markets but raise concerns about inflation and borrowing costs.

Treasury Secretary Scott Bessent announced increased purchases of long-term bonds, temporarily lowering yields. Bitcoin surged 23% weekly, boosted by regulatory news. Walmart's Q2 revenue beat expectations but shares fell 9.2% due to tariff refunds. Philadelphia Fed's manufacturing index rose to 47.4 in August, exceeding forecasts.

Bitcoin surged over 20% following U.S. Treasury intervention to lower long-dated bond yields. Custodia Bank founder Caitlin Long attributed the rally to potential yield curve control, noting it's dollar-negative, benefiting risk assets like Bitcoin. Bitcoin traded beyond $70,000 and later surpassed $75,000. Long suggested Bitcoin's rally reflects multiple favorable narratives, including its role as digital gold and inflation hedge.

U.S. stocks rose Friday, trimming weekly losses. The S&P 500 gained 0.4%, Dow +1%, Nasdaq +0.4%. Ross Stores led gains with a 4.4% rise after strong earnings. Bitcoin surged above $77,000, boosting crypto-related stocks like Robinhood and Coinbase. Treasury yields climbed, with the 10-year yield at 4.73%. Oil prices rose to $92.67 per barrel. Newmont and Freeport-McMoRan gained, while OSI Systems dropped 5.2% on weak earnings.