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Bitcoin's Sharpest Rally in Five Months Flips Markets From Bearish to Coin Flip
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- DeepHorus
Bitcoin jumped 8.7% on Wednesday to an intraday high of $69,749, its steepest daily gain since March 4 and highest price since June 1. The rally flipped prediction-market sentiment from bearish to a coin flip within 24 hours. The move followed the U.S. Treasury's announcement that it will double long-bond buybacks to $4 billion per operation starting September 9.
That policy drove long-end yields down and weakened the dollar, loosening financial conditions. Lower yields reduce the opportunity cost of holding non-yielding Bitcoin, while a weaker dollar makes assets cheaper for foreign buyers. Analysts have dubbed the dynamic "QE Lite," providing a tailwind for risk assets.
The squeeze was severe. CoinGlass data showed $1.14 billion in shorts liquidated across crypto in one hour, with Bitcoin accounting for $677.64 million. Crypto stocks rose sharply: Strategy up 12%, Coinbase up 9%, and Circle and BitMine each gaining about 9-10%.
Prediction markets scrambled. On Myriad, odds favoring a drop to $55,000 fell from roughly 70% to 51.9%, while the $84,000 scenario rose to 48.1%. Polymarket's 2026 market had priced a 56% chance of $55,000 and a 51% chance of $75,000, while Kalshi gave only 31% for $70,000 β a level already blown through.
The move wasn't solely crypto-driven. A White House meeting between crypto executives and regulators, plus a fresh SEC proposal easing registration rules, added to the "perfect storm." Near-term predictors were caught flat-footed, but year-end markets barely moved.
Technically, Bitcoin now faces resistance at $70,284. A daily close above that could open $73,245, while losing $68,000 would drag it back into its June range. Traders are watching whether the breakout holds.
