Bitcoin at $69,000 and Ethereum at $2,000: Rally Triggers $1.92 Billion in Liquidations
As Bitcoin reached $69,000 for the first time in two months and Ether surged 10% to hit $2,000, the rally—fueled by Treasury and SEC moves—triggered $1.92 billion in liquidations within 24 hours.
The surge in the cryptocurrency market followed the U.S. Treasury Department’s expansion of long-term bond buybacks and the U.S. Securities and Exchange Commission’s (SEC) proposal for a new framework for crypto asset offerings. While Bitcoin (BTC) reached a two-month high on Wednesday, Ether (ETH) returned to the $2,000 level for the first time since May. Solana, XRP, and other major altcoins also rose by more than 5% in the last 24 hours.
The Treasury Department announced it would increase the scale of its buyback operations intended to provide liquidity support for 10-20 year and 20-30 year bonds. The maximum amount per operation was raised from $2 billion to at least $4 billion. The new implementation will begin on September 9 and continue until November 4. Meanwhile, the SEC proposal announced on Tuesday outlines two exemptions for crypto asset offerings tied to investment contracts.
$1.92 Billion Liquidated in the Crypto Market
According to CoinGlass data, a total of $1.92 billion worth of positions were liquidated in the last 24 hours. Approximately $1.7 billion of this occurred in the last four hours alone as traders caught on the wrong side of leveraged positions were forced to close out.
Under the exemptions in the SEC proposal, issuers complying with disclosure requirements could raise up to $5 million over four years or up to $75 million annually. The rally was also reflected in the shares of crypto companies. Fold Holdings rose by approximately 20%, BitGo and American Bitcoin by about 15%, while Strategy and Bitmine gained around 10%. VanEck stated that the Bitcoin correction might be nearing its end, noting that 8 out of 12 capitulation signals have been observed. Capitulation refers to investors exiting the market amid intense selling pressure.