Live: Bitcoin Reclaims $72K as Rising Bond Yields Threaten the Rally

• Markets may soon put Treasury Secretary Scott Bessent’s efforts to bring down longer-term government bond yields to the test.

Philadelphia Fed Manufacturing Gauge Hits Decade-Plus High

• The Philadelphia Fed’s Manufacturing Business Outlook Survey jumped to 47.4 in August, marking its strongest reading in more than a decade.
• The index had already posted a solid 41.4 in July, while economists had expected it to fall to 25 as the World Cup effect faded.
• The prices-paid component declined 13 points to 40.9.
• Elsewhere, US initial jobless claims remained historically low, falling to 206,000 last week from 212,000 previously. The figure contrasts with recent nonfarm payrolls data, which has pointed to some softness in the labor market.
• Treasury yields continued to rise, with the 10-year yield gaining 4 basis points to 4.69%.

Bitcoin Pulls Back From $72,000 Ahead of US Trading

• Bitcoin eased to around $71,500 on Thursday after reaching an intraday peak of $72,344. Despite the retreat, BTC remained up about 11% for the day, according to CoinDesk data.
• The modest pullback came after Bitcoin broke above $72,000 during European trading hours, lifting its market capitalization back above $1.4 trillion.
• Crypto markets continued to move independently of stocks, with US equity futures struggling ahead of the opening bell as rising bond yields weighed on the Dow, S&P 500 and Nasdaq. Walmart shares also came under pressure following its earnings report.

Treasury Yields Rebound as Markets Test Bessent’s Strategy

• Treasury Secretary Scott Bessent scored a surprise win Wednesday after the Treasury Department announced plans to significantly increase its purchases of longer-dated government debt.
• Expectations of a stealth form of quantitative easing helped push the 30-year Treasury yield down by 10 basis points, providing a catalyst for the crypto rally that carried into Thursday and pushed Bitcoin above $72,000 for the first time since early June.
• However, sustainably lowering long-term borrowing costs is likely to require more than a single well-timed intervention from Bessent and the Treasury.
• Treasury yields have already recovered much of Wednesday’s decline. Around 90 minutes before US markets opened, the 30-year yield was up 5 basis points at 5.24%, erasing roughly half of its previous-day drop.
• The 10-year yield also climbed back above 4.70%, while the two-year yield recovered to 4.195% after falling as low as 4.12% on Wednesday.

Bitcoin Eyes First Positive August Since 2021

• Bitcoin is on track to record its first positive August since 2021, with BTC gaining about 15% so far this month. The previous four Augusts all ended lower despite the cryptocurrency’s historically favorable seasonal performance during the month.
• BTC is also positioned for its first quarterly gain since the third quarter of 2025, having advanced roughly 23% so far this quarter.
• However, August still has more than a week remaining, and September has historically been Bitcoin’s weakest month, with the cryptocurrency declining an average of 3%.
• Bitcoin was trading just below $72,000.

Weaker Dollar Could Add Fuel to Bitcoin Rally

• The US Dollar Index, which tracks the greenback against a basket of major currencies, has fallen 3% since the end of July and currently sits around 98.6.
• The index moved below its 200-day moving average on Wednesday after Bessent announced the Treasury’s bond-buyback plans.
• A sustained break below the 200-day average, currently near 99.1, could strengthen the bullish environment for risk assets such as Bitcoin, which was trading close to $72,000.

Bitcoin Breakout Triggers $243M in Short Liquidations

• Crypto short sellers suffered roughly $243 million in liquidations within an hour as Bitcoin’s move above $69,000 forced bearish traders to close positions, according to CoinGlass.
• Shorts represented almost the entire $252 million liquidation total, while long positions accounted for only about $9 million.
• Bitcoin accounted for approximately $220 million of the liquidations, while Ether contributed another $11 million.
• Leveraged positions are liquidated when prices move far enough against traders for exchanges to automatically close them. When short positions are closed, traders must buy the underlying asset, potentially creating additional upward pressure.
• Over a 24-hour period, total crypto liquidations reached $3.26 billion. Shorts accounted for $1.2 billion of the $1.31 billion liquidated during the previous 12 hours.

Bitcoin Reaches $71,000 With Weekly Gain Above 12%

• Bitcoin climbed to $71,000, gaining more than 2.5% over the previous 24 hours and roughly 12% over the past week.

RBI Takes Hawkish Turn, Raising Prospect of Rate Hike

• India’s Reserve Bank surprised markets by signaling that interest rates could rise later this year, sending domestic bond yields higher.
• Minutes from the RBI’s August meeting showed officials becoming increasingly concerned about inflation. Deputy Governor Poonam Gupta raised the possibility of a rate increase, while external members suggested that monetary policy could need adjustment.
• The shift could have implications beyond India’s bond market. As one of the world’s largest crypto markets by user base, India’s tighter monetary conditions could influence local crypto traders and strengthen the rupee-side financial environment.
• The RBI’s stance also contrasts with the broader global outlook, coming as expectations for a more accommodative US Federal Reserve and strong crypto ETF inflows help push Bitcoin above $69,000.

China’s AI Boom Puts Star 50 Index in the Spotlight

• China’s technology-heavy Star 50 Index is attracting increasing attention as Beijing pours investment into artificial intelligence and domestic semiconductor production.
• The index now consists of roughly 86% information technology companies and has outperformed the CSI 300 by around 30% this year.
• Its performance provides another indication of the global AI investment cycle, which has also driven semiconductor stocks that have broadly tracked crypto markets throughout the year.

Bitcoin and Ether ETFs Attract $706M as Rally Accelerates

• US spot Bitcoin ETFs recorded $517 million in inflows on Aug. 19, their strongest single-day intake since early May. Ether ETFs attracted another $189 million, their biggest daily inflow since October 2025, according to SoSoValue.
• The inflows reinforce the demand behind Bitcoin’s move above $69,000 and Ethereum’s 18% rally toward $2,250.
• The renewed buying follows months of subdued Bitcoin trading below $64,000 as ETF flows gradually improved. The latest surge suggests that institutional demand may finally be translating into a broader breakout.
• XRP and Solana funds also recorded modest inflows, while Hyperliquid’s product was the only one to see an outflow, at roughly $2 million.
• The rally also triggered heavy losses for bearish traders, with short crypto positions suffering a record $2.7 billion in liquidations as Bitcoin approached $70,000.
• The key question now is whether ETF demand can persist. One strong day of inflows supports the breakout but does not yet prove that the move will hold, especially given Bitcoin’s previous failed attempts to escape its range.
• If ETF buying remains elevated for another two or three sessions, it could signal the return of sustained institutional demand that has been missing since spring. A sharp reversal, however, could bring the $64,000 area back into focus as a key support level.

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