$2.7 billion in short positions forcibly liquidated — largest on record
Bitcoin (BTC) surged more than 7% on U.S.-driven positive developments, recovering to the $69,000 level for the first time in two months. Expectations for crypto-friendly policies and regulatory easing under U.S. President Donald Trump boosted investor sentiment, while a wave of massive short-position liquidations further fueled the gains.
As of 9 a.m. on Aug. 20, Bitcoin was trading at $63,533 on Bithumb, up 4.62% from the same time the previous day.
At the same time, Bitcoin was trading at $69,343 on CoinMarketCap, up 7.18% from 24 hours earlier. It was the first time in about two months, since June, that Bitcoin had recovered to the $69,000 level.
Factors behind Bitcoin’s rise included △U.S. President Donald Trump’s consideration of crypto-friendly policies △the U.S. Securities and Exchange Commission’s (SEC) proposal to exempt certain crypto projects from registration requirements △the U.S. Treasury’s expansion of long-term Treasury buybacks.
Trump said at an event at the White House on Aug. 19 (local time) that the government was considering Bitcoin and crypto-related policies at the national level. He also called for the swift passage of the Clarity Act, a bill establishing a regulatory framework for the crypto market.
The SEC proposed rules the previous day aimed at lowering the funding barriers for crypto projects. The proposal would exempt crypto projects that meet certain requirements from some regulations, including securities registration requirements.
The U.S. Treasury’s move to stabilize the long-term Treasury market also boosted investor sentiment. The Treasury said it would at least double the size of its buybacks to improve liquidity in long-term Treasurys.
As Bitcoin prices rose rapidly, a “short squeeze” occurred as large numbers of investors betting on a decline were forced to close their positions, further accelerating the gains.
Bloomberg reported that “Bitcoin surged in a short squeeze, triggering the largest short-position liquidation since 2021,” adding that “more than $1 billion in short positions were liquidated within an hour.”
It added that “crypto-friendly policies by the U.S. government and measures to expand Treasury liquidity drove buying demand,” while “crypto-related stocks including Coinbase and Strategy also posted strong gains.”
According to CoinGlass, forced liquidations of short positions across the crypto market totaled $2.738 billion from 9 a.m. on Aug. 19 through the morning of Aug. 20. That exceeded the previous record of $2.467 billion set on Oct. 10 last year.
“Bitcoin Could Reach $100,000 by Year-End on U.S. Treasury Buybacks”
Standard Chartered (SC) forecast that Bitcoin could reach $100,000 by the end of the year, helped by the U.S. Treasury’s expansion of long-term Treasury buybacks.
According to CoinDesk on Aug. 19 (local time), Geoff Kendrick, SC’s global head of digital asset research, said, “If Bitcoin breaks above $65,500, it could signal that the low for this cycle has already been established.”
He added, “Investors should prepare for Bitcoin to move toward $100,000 by year-end.”
He said, “The expansion of the U.S. Treasury’s long-term Treasury purchases is the type of government intervention Bitcoin favors most,” explaining that “Bitcoin’s fixed supply makes it a potential hedge against currency depreciation.”
Coinbase Supports Perpetual Futures Trading With Up to 50x Leverage
Coinbase, the largest U.S. crypto exchange, will support perpetual futures trading with up to 50x leverage through its proprietary application, Base app.
According to Decrypt on Aug. 19 (local time), Coinbase integrated the decentralized derivatives trading protocol Hyperliquid into Base app, providing access to more than 290 perpetual futures products.
Base app users can trade crypto perpetual futures through Hyperliquid with leverage of up to 50x.
Chintan Turakhia, Coinbase’s head of engineering, said, “About 75% of total crypto trading volume currently comes from futures rather than spot trading,” adding that “perpetual futures was also the feature most requested by Base app users.”
Cantor Fitzgerald to Support Institutional Prediction Market Trading on Kalshi
Wall Street investment bank Cantor Fitzgerald will begin supporting trading on prediction market platform Kalshi for institutional clients.
According to CoinDesk on Aug. 19 (local time), Cantor Fitzgerald plans to provide large-scale prediction market trading services through Kalshi to about 3,000 institutional clients.
Susquehanna International Group (SIG), a market maker for Kalshi, will handle pricing and provide liquidity. Cantor Fitzgerald will act as the broker, supporting institutional clients with trade preparation and execution.