Bitcoin surged from $64,400 to above $71,000 in 24 hours, marking its largest daily close since February without a preceding crash. The rally followed the US Treasury’s announcement to double liquidity-support buybacks for long-term debt to at least $4 billion per operation. The 30-year Treasury yield, which hit a 20-year high of 5.34%, dropped to 5.20%, boosting risk assets. Additional support came from tariff pauses and economic sanctions on Iran. US spot Bitcoin ETFs saw net inflows of $517 million, the highest since early May. Open interest reached its highest level since 2023, amplifying price moves through liquidations.
Bitcoin exploded from $64,400 to above $71,000 in 24 hours, first reaching that level since early June. According to Glassnode, the daily close was the largest since February but without a “crash to bounce off,” calling it a 5.8 sigma move – the largest upside since October 2023.
The main catalyst was the US Treasury’s announcement to double the maximum size of liquidity-support buybacks for longer-dated government debt. The operations will rise from $2 billion to at least $4 billion per operation, starting September 9 through November 4. This came after the 30-year Treasury yield hit 5.34% on Tuesday, the highest in nearly 20 years. The yield immediately dropped to 5.20%, while stocks, gold, and crypto moved higher.
Two additional US-related factors supported risk assets. The POTUS paused tariffs against Canada and later announced a deal to cut some from 25% to 15%. On Iran, the POTUS outlined a strategy of economic warfare, stating: “I am announcing the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY!” No new physical attacks were threatened.
Bitcoin-specific catalysts included strong ETF inflows. Data shows daily net inflows of just over $517 million for yesterday, the highest since early May when flows hit $630 million and $532 million over two sessions. Those inflows exceeded the entire month of July, which attracted $172.43 million.
Open interest built to its highest position since 2023, higher than before the October 2025 liquidation cascade that topped $19 billion. The leverage amplifies every smaller move, as seen in the cascade of liquidations targeting wrong-side traders.
