Bitcoin Rises to Nearly $70,000, Analysts Expect Resistance

On August 19, the price of Bitcoin surged from around $64,100 to nearly $70,000 after the U.S. Treasury doubled the cap on its long-term bond buyback program. During the same period, approximately $1.4 billion in cryptocurrency short positions were liquidated. The Treasury raised the single-operation cap for buybacks of 10-20 year and 20-30 year securities from $2 billion to at least $4 billion, covering the period from September 9 to November 4, aimed at improving liquidity in the long-term sector. Following the announcement, U.S. Treasury yields fell, with the 30-year bond yield dropping from a peak of nearly 5.34% to about 5.19%, and the 10-year bond yield falling to around 4.65%. On the same day, the U.S. dollar index decreased by 0.75% to 98.90. Despite the easing of yields, the minutes from the Federal Reserve's July meeting indicated a more hawkish tone, with several participants leaning towards a 25 basis point rate hike and suggesting that further tightening may be necessary if inflation does not subside. The market is focused on the $16 billion 20-year Treasury auction on August 20, which had a yield of 5.204%, slightly above the level before bidding began, reversing some of the earlier gains in U.S. Treasury bonds for the day.

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