Bitcoin and Ether Reach Their Highest Levels Since June

On August 19, bitcoin surpassed $69,000, while ether climbed back above $2,000. Both assets reached their highest levels since June. More than $1.2 B in positions were liquidated within one hour, while 24-hour liquidations reached about $1.6 B, with short positions accounting for most of the total.

The market move began after the U.S. Treasury announced an increase in the maximum amount of long-term Treasury securities it could buy back. The limit for operations involving Treasury securities with maturities of 10–20 and 20–30 years was raised from a minimum of $2 B to $4 B. Market participants viewed the decision as a move toward easing financial conditions.

The new parameters will take effect on September 9 and remain in place through November 4.

Bitcoin’s Biggest Daily Gain

According to Glassnode, bitcoin’s daily close came in at 5.8 standard deviations relative to its own 30-day volatility. This was the largest upward move by this measure since October 2023.

The previous daily gain of comparable magnitude occurred in February and followed a 14% drop in bitcoin. No comparable sell-off preceded the August move.

Trump’s Statements on Crypto Purchases

That same day, Donald Trump met with representatives of the crypto industry and regulators at the White House.

When asked about possible government purchases of significant amounts of bitcoin and other cryptocurrencies, Trump said the issue had been discussed. He also said he was willing to consider recommendations from SEC Chair Paul Atkins and other officials.

At the time of publication, BTC is trading at $71,912, while ETH is trading at $2,286. The Fear and Greed Index has risen to 62 points, indicating greed.

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