The crypto market is rising today with Bitcoin moving sharply higher and Ethereum gaining around 20% in a day. Solana is also performing well. However, many other altcoins have gained only around 5%-7% and some remain near their lows.
U.S. spot Bitcoin ETFs have recorded buying for three straight day. More than 8,000 BTC were reportedly purchased through the ETFs in the latest session, with BlackRock alone buying more than 4,000 BTC. This buying helped push Bitcoin from around $64,000 toward $70,000.
The rally was initially driven by a sharp wave of short liquidations, while new U.S. Treasury measures and fresh political support for the crypto industry added to bullish sentiment.
Bitcoin rose more than 8% after about $1.2 billion worth of short positions were liquidated within an hour. Short sellers betting on lower prices were forced to close their positions as Bitcoin moved higher, adding further buying pressure. The move helped push Bitcoin to its highest level since June 2 and eventually above $70,000.
The market is now watching trading volume closely. Higher volume has accompanied the rally, although selling pressure remains visible around current levels.
Another major factor behind the move is the U.S. Treasury’s decision to increase its planned purchases of long-term government debt.
The Treasury plans to raise monthly buybacks from $2 billion to at least $4 billion. The purchases are designed to improve liquidity in U.S. government bonds with maturities of 10 to 30 years, as total U.S. debt approaches $40 trillion.
The program begins September 9 and runs through November 4. While it is not the same as the Federal Reserve launching a large-scale money-printing program, the move is expected to provide support to the bond market and ease pressure on long-term yields.
That matters for crypto because easier financial conditions can encourage investors to move into riskier assets such as Bitcoin and other cryptocurrencies.
The rally also comes as President Donald Trump met with major crypto executives at a White House summit.
Trump was asked whether his administration plans to build sizable Bitcoin or other crypto holdings. He said the idea has been discussed and that he would consider recommendations from his advisers.
However, the comments do not represent a confirmed plan for the U.S. government to buy large amounts of Bitcoin.
Trump and Coinbase CEO Brian Armstrong also called for Congress to pass the Clarity Act. Armstrong said a key vote is expected on September 15 and argued that the legislation would make recent crypto policy changes more permanent.
Several altcoins are also gaining on their own developments.
Hyperliquid’s HYPE token jumped about 11% after Trump said the administration is working to bring Hyperliquid into the U.S. in a legal and compliant way.
Injective also received SEC registration for its transfer-agent services through an affiliated entity. The registration allows the entity to maintain securities ownership records and supports Injective’s wider push into tokenized assets.
Tokenization was another major theme at the summit. Chainlink co-founder Sergey Nazarov said stablecoin use and the tokenization of U.S. assets are expanding, while Robinhood CEO Vlad Tenev said tokenized stocks could become a major part of the future financial system.
Robinhood’s blockchain already offers tokenized exposure to U.S. stocks, with the number of available stock tokens increasing from 90 to 190. These assets can trade around the clock and are available to users in more than 120 countries.
Bitcoin’s move above $70,000 is a positive development, but it does not guarantee that the market has entered a sustained bull run. The key levels are now $73,000-$75,000, followed by $80,000-$82,000. Ethereum needs to clear $2,400-$2,500 to strengthen its recovery.
Traders will also watch Bitcoin ETF flows, spot-market volume, miner selling, inflation data and the Federal Reserve’s September decision.
After a sharp move, a 2%-5% correction would not be unusual, while larger gains in Bitcoin and Ethereum could also attract profit-taking.
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