Bitcoin Jumps Above $68,000, Triggers $1.7 Billion in Short Liquidations

Bitcoin climbed above $68,000 during Wednesday’s US morning trading, gaining roughly 6% over 24 hours after Treasury Secretary Scott Bessent announced a doubling of the government’s bond buyback operations. Investors viewed the move as a potential liquidity backstop for the massive Treasury market, sparking broad gains across risk assets.

Crypto Stocks and Short Sellers Feel the Squeeze

Crypto-related stocks rallied sharply, with Bullish jumping nearly 13% and Coinbase up 11%. The sudden price surge triggered around $1.7 billion in short position liquidations within just four hours, as bearish traders were forced to close positions. Gold also climbed, rising 2.7% to $4,528 an ounce, its highest level since early June.

Ether and Altcoins Outpace Bitcoin

Ether outperformed bitcoin during the rally, gaining over 8% to reach $2,084, its highest level since late May, while solana rose 7% to $82. Open interest on ether trading pairs briefly spiked from $11.7 billion to $13 billion before settling back to $12.5 billion, pointing to a wave of leveraged buying activity alongside the short liquidations.

Rally Precedes Key Washington Meeting

The price surge comes just ahead of a scheduled meeting between President Trump and several crypto industry leaders, along with SEC Chair Paul Atkins, CFTC Chair Mike Selig, and representatives from major exchanges including Nasdaq, NYSE, CME Group, and the DTCC.