Live: BTC Reaches $72K as Rising Treasury Yields Put Rally in Focus -

Markets could put Treasury Secretary Scott Bessent’s strategy to lower long-term US borrowing costs under renewed pressure as bond yields rebound.

The Philadelphia Fed’s Manufacturing Business Outlook Survey jumped to 47.4 in August, reaching its highest level in more than a decade.
The reading followed July’s 41.4, while economists had anticipated a decline to 25.
The prices-paid index fell 13 points to 40.9, pointing to easing cost pressures.
US initial jobless claims also remained near historically low levels, dropping to 206,000 last week from 212,000 previously. The data contrasts with recent nonfarm payrolls reports that have indicated some labor-market weakness.
Treasury yields continued climbing, with the 10-year yield up four basis points at 4.69%.

Bitcoin retreated to around $71,500 on Thursday after touching $72,344 earlier in the day. Despite the pullback, BTC remained roughly 11% higher on the day, according to CoinDesk.
The decline was limited after Bitcoin broke through $72,000 during European trading hours, lifting its market capitalization above $1.4 trillion.
Crypto markets continued to diverge from equities, with US stock futures showing little direction before the opening bell. Higher Treasury yields weighed on the Dow, S&P 500 and Nasdaq, while Walmart shares slipped following its earnings report.

The Treasury Department surprised investors Wednesday by announcing plans to more than double its purchases of longer-dated government bonds.
The move sparked speculation about a potential liquidity boost similar to quantitative easing, pushing the 30-year Treasury yield down 10 basis points and helping fuel Bitcoin’s move above $72,000, its first such level since early June.
Whether the strategy can deliver a lasting decline in long-term rates remains uncertain, as yields have already started reversing Wednesday’s move.
About 90 minutes before the US market opened, the 30-year yield had risen five basis points to 5.24%, recovering around half of its previous-day decline.
The 10-year yield climbed back above 4.70%, while the two-year yield increased to 4.195% after falling to 4.12% on Wednesday.

Bitcoin is on track to record its first positive August since 2021, with BTC up roughly 15% this month.
The cryptocurrency has ended each of the past four Augusts lower and is also positioned for its first quarterly gain since Q3 2025, with a 23% increase so far this quarter.
The rally still faces a seasonal test, as September has historically been Bitcoin’s weakest month, with BTC averaging a roughly 3% decline.
Bitcoin was trading just below $72,000.

The US Dollar Index has declined 3% since the end of July to around 98.6.
The dollar gauge fell below its 200-day moving average on Wednesday following Bessent’s announcement on Treasury bond buybacks.
If DXY remains below the 200-day average near 99.1, continued dollar weakness could provide another tailwind for risk assets, including Bitcoin.

Bitcoin’s push above $69,000 wiped out roughly $243 million in short positions within an hour, according to CoinGlass.
Shorts accounted for nearly all of the $252 million liquidated during that period, while long positions lost about $9 million.
Bitcoin made up roughly $220 million of the liquidations, while Ether contributed another $11 million.
Leveraged trades are automatically closed once losses reach liquidation thresholds. When short positions are forced out, traders must buy back the asset, potentially creating additional upward pressure.
Total crypto liquidations reached $3.26 billion over 24 hours, including $1.2 billion in short liquidations during the previous 12-hour period.

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

India’s Reserve Bank surprised markets by signaling that it could raise interest rates later this year, pushing local bond yields higher.
Minutes from the RBI’s August meeting showed increased concern about inflation. Deputy Governor Poonam Gupta raised the prospect of a rate hike, while external members pointed to a potential need to adjust monetary policy.
The change in stance could affect crypto activity in India, one of the world’s largest markets by crypto users, as tighter financial conditions could influence local traders and strengthen the rupee backdrop.
The RBI’s hawkish signal comes as markets anticipate a softer US Federal Reserve stance and strong crypto ETF inflows, factors that have helped Bitcoin rise above $69,000.

China’s technology-focused Star 50 Index is gaining prominence as the country increases spending on artificial intelligence and semiconductor self-sufficiency.
Information technology companies make up roughly 86% of the index, which has outperformed the CSI 300 by about 30% this year.
Its performance offers another snapshot of the global AI investment cycle, which has also supported semiconductor stocks that have broadly tracked crypto markets this year.

US spot Bitcoin ETFs attracted $517 million on Aug. 19, marking their largest daily inflow since early May. Ether ETFs added $189 million, their biggest inflow since October 2025, according to SoSoValue.
The combined $706 million inflow underscores renewed demand behind Bitcoin’s move above $69,000 and Ethereum’s 18% surge toward $2,250.
The latest ETF demand comes after months of Bitcoin trading below $64,000, during which institutional flows gradually improved. The renewed inflows suggest that institutional buying may now be helping drive the breakout.
XRP and Solana funds also posted smaller inflows, while Hyperliquid’s product recorded an outflow of roughly $2 million.
Bitcoin’s surge also caused heavy losses for bearish traders, with crypto short positions suffering a record $2.7 billion in liquidations as BTC approached $70,000.
The rally’s durability will depend partly on whether ETF inflows remain strong. One large inflow day supports the breakout but does not establish a lasting trend.
Continued ETF demand over the next few sessions could confirm a stronger return of institutional buying, while a reversal could send Bitcoin back toward the $64,000 support zone.

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