Bitcoin Surges 10.6% in Two Days, Tops $72,000 for First Time Since June

Bitcoin Tops $72,000 for First Time Since June; XRP Jumps 15% in a Day

Treasury Buybacks, Lower Yields and Short Squeeze Fuel Crypto Rally

Bitcoin climbed above 100 million won, or about $72,300, for the first time in two months after surging more than 10% in two days. The rally was driven by lower U.S. Treasury yields after an expansion in long-dated Treasury buybacks, expectations for looser crypto regulation and a wave of forced short covering.

According to South Korean crypto exchange Upbit, Bitcoin traded at 100.591 million won, or about $72,700, as of 9 a.m. on Aug. 21, up 5.5% from 24 hours earlier. It was the first time Bitcoin had topped 100 million won since June 1, when it reached 104.14 million won. From 90.933 million won at 9 a.m. on Aug. 19, the token has gained 10.6% in two days.

Altcoins also rose broadly. XRP jumped 15% as of 9 a.m. on Aug. 21 from a day earlier, its biggest one-day gain since a 22% advance on Feb. 6 and the strongest in more than six months. Ether rose 3.5%, while Solana added 3%.

The first catalyst for the rally was a drop in U.S. Treasury yields. Yields fell after news on Aug. 19 that the U.S. Treasury would expand buybacks of long-term government bonds.

Expectations for broader crypto institutionalization also added support. President Donald Trump met crypto industry officials at the White House and urged passage of the Clarity Act, a digital-asset market structure bill. The U.S. Securities and Exchange Commission also proposed a crypto regulation framework intended to help digital-asset projects raise funds.

The rally was further amplified by a short squeeze, as investors betting on lower Bitcoin prices were forced to unwind short positions. That triggered additional buying and widened the advance. CoinGlass, a crypto data provider, said positions worth $1 billion were liquidated within one hour at one point during the surge.

Continued moves by major U.S. agencies to formalize the crypto market also supported sentiment. The Commodity Futures Trading Commission said on Aug. 20 that it would prepare its own regulatory framework if the Clarity Act does not pass.

Recent price declines have also fueled views that Bitcoin has already passed its bottom. In South Korea, Bitcoin fell as low as 89.12 million won on Aug. 14.

"Perceptions are spreading that Bitcoin, which had traded at depressed levels for a long period, may already have bottomed out," Kim Min-seung, head of research at Korbit, said. "The market is responding in earnest as positive developments keep coming from the U.S. Treasury, the White House, the SEC and the CFTC."

Park Si-on, Hankyung.com reporter ushire908@hankyung.com