TLDR:
- Bitcoin price rose 11.50% in 24 hours, reaching $71,875.32 amid heavy short covering activity.
- Binance saw its strongest short squeeze ever, liquidating over $311 million in shorts quickly.
- Treasury doubled bond buybacks to $4 billion, pulling 10-year yields down to 4.647% total.
- Total crypto liquidations hit $1.59 billion in 24 hours as Bitcoin shorts unwound rapidly.
Bitcoin surged to $71,875.32 as of this writing, posting a 24-hour gain of 11.50 percent and a seven-day increase of 13.00 percent. Trading volume reached $65.6 billion as buyers overwhelmed leveraged short positions across major exchanges.
Analysts point to an expanded Treasury bond buyback program as the catalyst behind falling yields, which pushed capital toward risk assets.
The resulting rally triggered one of the largest liquidation events of the year, wiping out more than $1.4 billion in short positions within hours.
Short Squeeze Drives Sharpest Rally Since February
Bitcoin’s rally marked its strongest single-day performance since February 2026, according to market data shared by crypto analyst Darkfost.
The cryptocurrency gained roughly 7.1 percent during the session, extending a broader move that pushed prices well above $69,000.
Analysts described the liquidation wave that accompanied the rally as extreme, noting more than $1.4 billion in short positions were forced closed within a short window.
Binance, which handles close to 36 percent of Bitcoin’s total open interest, recorded its largest short squeeze since the exchange introduced BTC futures contracts.
Over $311 million in short positions were liquidated on the platform within a matter of hours. Traders holding bearish bets were forced to buy back Bitcoin to limit mounting losses.
That forced buying created a feedback loop that intensified the upward move. Each round of liquidations pushed prices higher, triggering further margin calls on remaining short positions.
Market observers describe this pattern as a snowball effect, where one wave of buybacks accelerates the next round of forced purchases.
Sudden volatility of this scale often sends ripples through the wider cryptocurrency market beyond Bitcoin alone. Altcoins and other digital assets frequently mirror large BTC moves during liquidation events.
Traders monitoring open interest across exchanges noted the scale of yesterday’s squeeze as unusually large for the platform.
Treasury Bond Buyback Expansion Sparks the Move
The rally traces back to an announcement from the U.S. Treasury regarding its long-term bond buyback program. According to trader Ronald Carter, the Treasury doubled the maximum size of each buyback operation from $2 billion to at least $4 billion.
The expanded purchases target bonds maturing in 10 to 20 years and 20 to 30 years, running from September 9 through November 4.
Larger buybacks tend to support demand for existing government debt, which can pull yields lower over time. Following the announcement, the 10-year Treasury yield fell 6 basis points to 4.647 percent. The 30-year yield dropped 9 basis points to 5.196 percent, reflecting the shift in demand.
Bitcoin’s price responded quickly once yields began falling across the bond market. The asset traded near $65,400 at 10:45 a.m. Eastern time before climbing to $67,600 by 11:26 a.m. One minute later, Bitcoin reached $69,700, adding more than $2,000 in value within sixty seconds.
That rapid move trapped traders positioned against Bitcoin, forcing widespread liquidations across the broader market.
Total crypto liquidations reached $1.59 billion over 24 hours, with $746 million tied to Bitcoin short positions alone.
Carter noted the move should not be confused with quantitative easing, since the Federal Reserve took no action and the Treasury operation remains small relative to total government debt issuance.
