Around $3 billion in crypto short positions were liquidated in just a single day. This event occurred as Bitcoin gained more than 23% in a week, breaking the $79,000 level on Friday, August 21. This price momentum did not stop in the digital asset market, but immediately spread to conventional stock markets.
Dual Triggers Behind the Rise
This price surge was driven by macroeconomic policy. The United States Treasury Department has just announced plans to double its long-term bond buybacks. The figure increases from $2 billion to a minimum of $4 billion per operation, a rule that will take effect on September 9. This liquidity decision clears the way for risk assets to move upward.
In the political arena, regulatory sentiment has also shifted. Donald Trump is pressing Congress to quickly advance the CLARITY Act. This legislative maneuver is accompanied by signals that the US government is starting to consider a large-scale Bitcoin acquisition scenario. The combination of the Treasury’s moves and political maneuvers was immediately responded to by the market.
Mining and Exchange Stocks Rise Double Digits
The ripple effect is clearly visible on the trading boards of US crypto companies. Within a 48-hour period, MARA led with a 33% increase, followed by Coinbase which rose 30%. A line of other big names also recorded positive gains: Strategy (MSTR), Gemini, and Circle each posted a 28% increase, Bitmine 22%, Robinhood 15%, and Riot 10%.
Mining hardware manufacturing companies also lifted. Canaan stock rose more than 25% in Friday’s trading. Outside of the US exchanges, Japanese public company Metaplanet - which recently acquired Nasdaq-listed company Super League Enterprise - saw its share price rise by more than 16%. Strive, a company with reserves of over 20,000 BTC on its balance sheet, also recorded an increase of over 16%.
Further Effects on the Crypto Ecosystem
The spillover of funds did not stop at Bitcoin and its related company stocks. Ether also recorded a positive impact, rising nearly 30% in a week, pushing its price past the $2,400 mark.
The two-way capital inflow - from the direct coin market and traditional stock market - demonstrates a new way investors are responding to monetary easing. As the liquidity tap is opened by the Treasury Department, crypto-affiliated equities now stand at the forefront of receiving fund flows.
Reported from Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
